To determine the true statement based on the data in the spreadsheet, let's carefully walk through each of the steps involved:
1. Calculate Total Cash Inflow:
- Disposable Income: [tex]$1600
- Interest on Deposits: $[/tex]0
- Income from Investments: [tex]$0
Total Cash Inflow = $[/tex]1600 + [tex]$0 + $[/tex]0 = [tex]$1600
2. Calculate Total Cash Outflow:
- Rent: $[/tex]575
- Utilities: [tex]$120
- Cable and Telephone: $[/tex]80
- Groceries: [tex]$320
- Car Expenses: $[/tex]150
- Recreation: [tex]$80
- Insurance: $[/tex]115
- Miscellaneous: [tex]$50
Total Cash Outflow = $[/tex]575 + [tex]$120 + $[/tex]80 + [tex]$320 + $[/tex]150 + [tex]$80 + $[/tex]115 + [tex]$50 = $[/tex]1490
3. Calculate Net Cash Flow:
Net Cash Flow = Total Cash Inflow - Total Cash Outflow
Net Cash Flow = [tex]$1600 - $[/tex]1490 = [tex]$110
Given these calculations, the net cash flow is $[/tex]110, which is positive.
Therefore, the statement "The net cash flow is negative" is false.
The true statement is actually that the net cash flow is positive and amounts to $110.
