Answered

Which of the following spreadsheets shows the financial plan with the greatest net cash flow?

a.
[tex]\[
\begin{array}{|c|c|c|}
\hline
& A & B \\
\hline
1 & Cash Inflows & \\
\hline
2 & Disposable income & \$ 2,350 \\
\hline
3 & Interest on deposits & \$ 0 \\
\hline
4 & Income from investments & \$ 0 \\
\hline
5 & Total Cash Inflow & \$ 2,350 \\
\hline
6 & & \\
\hline
7 & Cash Outflows & \\
\hline
8 & Rent & \$ 800 \\
\hline
9 & Utilities & \$ 235 \\
\hline
10 & Cable and telephone & \$ 125 \\
\hline
11 & Groceries & \$ 400 \\
\hline
12 & Car expenses & \$ 320 \\
\hline
13 & Recreation & \$ 175 \\
\hline
14 & Insurance & \$ 200 \\
\hline
15 & Miscellaneous & \$ 80 \\
\hline
16 & Total Cash Outflow & \$ 2,335 \\
\hline
\end{array}
\][/tex]

b.
[tex]\[
\begin{array}{|c|c|c|}
\hline
& A & B \\
\hline
1 & Cash Inflows & \\
\hline
2 & Disposable income & \$ 3,000 \\
\hline
3 & Interest on deposits & \$ 50 \\
\hline
4 & Income from investments & \$ 200 \\
\hline
5 & Total Cash Inflow & \$ 3,250 \\
\hline
6 & & \\
\hline
7 & Cash Outflows & \\
\hline
8 & Rent & \$ 1,000 \\
\hline
9 & Utilities & \$ 300 \\
\hline
10 & Cable and telephone & \$ 150 \\
\hline
11 & Groceries & \$ 500 \\
\hline
12 & Car expenses & \$ 400 \\
\hline
13 & Recreation & \$ 250 \\
\hline
14 & Insurance & \$ 300 \\
\hline
15 & Miscellaneous & \$ 100 \\
\hline
16 & Total Cash Outflow & \$ 3,000 \\
\hline
\end{array}
\][/tex]

c.
[tex]\[
\begin{array}{|c|c|c|}
\hline
& A & B \\
\hline
1 & Cash Inflows & \\
\hline
2 & Disposable income & \$ 2,000 \\
\hline
3 & Interest on deposits & \$ 10 \\
\hline
4 & Income from investments & \$ 0 \\
\hline
5 & Total Cash Inflow & \$ 2,010 \\
\hline
6 & & \\
\hline
7 & Cash Outflows & \\
\hline
8 & Rent & \$ 700 \\
\hline
9 & Utilities & \$ 200 \\
\hline
10 & Cable and telephone & \$ 100 \\
\hline
11 & Groceries & \$ 300 \\
\hline
12 & Car expenses & \$ 250 \\
\hline
13 & Recreation & \$ 100 \\
\hline
14 & Insurance & \$ 150 \\
\hline
15 & Miscellaneous & \$ 50 \\
\hline
16 & Total Cash Outflow & \$ 1,850 \\
\hline
\end{array}
\][/tex]

d.
[tex]\[
\begin{array}{|c|c|c|}
\hline
& A & B \\
\hline
1 & Cash Inflows & \\
\hline
2 & Disposable income & \$ 2,500 \\
\hline
3 & Interest on deposits & \$ 20 \\
\hline
4 & Income from investments & \$ 100 \\
\hline
5 & Total Cash Inflow & \$ 2,620 \\
\hline
6 & & \\
\hline
7 & Cash Outflows & \\
\hline
8 & Rent & \$ 850 \\
\hline
9 & Utilities & \$ 250 \\
\hline
10 & Cable and telephone & \$ 130 \\
\hline
11 & Groceries & \$ 350 \\
\hline
12 & Car expenses & \$ 300 \\
\hline
13 & Recreation & \$ 180 \\
\hline
14 & Insurance & \$ 220 \\
\hline
15 & Miscellaneous & \$ 70 \\
\hline
16 & Total Cash Outflow & \$ 2,350 \\
\hline
\end{array}
\][/tex]



Answer :

GinnyAnswer
Let's break down the solution step by step for the given spreadsheet:

1. Identify and Sum the Cash Inflows:
- Disposable income: [tex]$2,350 - Interest on deposits: $[/tex]0
- Income from investments: [tex]$0 - Total Cash Inflow: $[/tex]2,350

2. Identify and Sum the Cash Outflows:
- Rent: [tex]$800 - Utilities: $[/tex]235
- Cable and telephone: [tex]$125 - Groceries: $[/tex]400
- Car expenses: [tex]$320 - Recreation: $[/tex]175
- Insurance: [tex]$200 - Miscellaneous: $[/tex]80
- Total Cash Outflow: [tex]$2,335 3. Calculate the Net Cash Flow: - Net Cash Flow = Total Cash Inflows - Total Cash Outflows - Net Cash Flow = $[/tex]2,350 - [tex]$2,335 = $[/tex]15

Therefore, the financial plan presented in the given spreadsheet shows a net cash flow of $15. This is the solution to the question and represents the net amount of cash remaining after accounting for both inflows and outflows.