To analyze Ted's cash flow for the month, we'll go through each section of his income and expenses systematically.
### Cash Inflows
1. Disposable Income: \[tex]$5,000
2. Interest on Deposits: \$[/tex]0
3. Income from Investments: \[tex]$225
Now, summing up all the sources of cash inflows:
$[/tex][tex]$
\text{Total Cash Inflow} = \text{Disposable Income} + \text{Interest on Deposits} + \text{Income from Investments}
$[/tex][tex]$
Substituting the values:
$[/tex][tex]$
\text{Total Cash Inflow} = 5000 + 0 + 225 = \$[/tex]5,225
[tex]$
### Cash Outflows
1. Initial Cash Outflows: \$3,000
2. Rent: \$250
3. Utilities: \$175
4. Satellite Dish: \$135
5. Cell Phone Plan: \$385
6. Car Lease Payments: \$200
7. Groceries: \$380
8. Insurance: \$700
9. Recreation: \$5,225
We need to sum up all these expenses to find the total cash outflow.
$[/tex]
\text{Total Cash Outflow} = \text{Initial Cash Outflows} + \text{Rent} + \text{Utilities} + \text{Satellite Dish} + \text{Cell Phone Plan} + \text{Car Lease Payments} + \text{Groceries} + \text{Insurance} + \text{Recreation}
[tex]$
Substituting the values:
$[/tex]
\text{Total Cash Outflow} = 3000 + 250 + 175 + 135 + 385 + 200 + 380 + 700 + 5225 = \[tex]$10,450
$[/tex][tex]$
### Conclusion:
Based on the given information and the calculations:
- The Total Cash Inflow for the month is \$[/tex]5,225.
- The Total Cash Outflow for the month is \[tex]$10,450.
Therefore, Ted’s monthly cash flow results in a net deficit, meaning his total outflows exceed his inflows by \$[/tex]5,225.
