To determine which spreadsheet shows the financial plan with the greatest net cash flow, let's first understand how to calculate the net cash flow.
Net cash flow is defined as the difference between total cash inflow and total cash outflow:
[tex]\[ \text{Net Cash Flow} = \text{Total Cash Inflow} - \text{Total Cash Outflow} \][/tex]
Let's analyze the given spreadsheet in detail:
1. Cash Inflows
- Disposable income: \[tex]$2,350
- Interest on deposits: \$[/tex]0
- Income from investments: \[tex]$0
The Total Cash Inflow is calculated as:
\[ 2,350 + 0 + 0 = \$[/tex]2,350 \]
2. 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
The Total Cash Outflow is calculated as:
[tex]\[ 800 + 235 + 125 + 400 + 320 + 175 + 200 + 80 = \$2,335 \][/tex]
Given these totals:
- Total Cash Inflow: \[tex]$2,350
- Total Cash Outflow: \$[/tex]2,335
The Net Cash Flow can be calculated as:
[tex]\[ \text{Net Cash Flow} = 2,350 - 2,335 = \$15 \][/tex]
So, the financial plan represented in this particular spreadsheet has the following values:
- Total Cash Inflow: \[tex]$2,350
- Total Cash Outflow: \$[/tex]2,335
- Net Cash Flow: \[tex]$15
By comparing this data, we find that this spreadsheet shows a net cash flow of \$[/tex]15. To determine if it is the greatest, compare it to other financial plans provided in similar spreadsheets. In this case, as no other spreadsheets are mentioned, this is the only financial plan analyzed, and thus, it shows a net cash flow of \$15.
