ENTREPRENEURSHIP

ENTREPRENEURIAL PLANNING

FINANCIAL PLANNING AND ANALYSIS

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
During May, Andy had cash inflows of $550, $40, $65, and $80. He had cash outflows of $10, $30, $60, $25, $100, and $250. What is Andy’s net cash flow?
A
260
B
995
C
550
D
250
Explanation: 

Detailed explanation-1: -Examples of cash inflow include money earned from selling products and returns on any investments. Conversely, cash outflow can consist of your operating expenses, debts, and other liabilities.

Detailed explanation-2: -When total cash inflows exceed total cash outflows, the excess is identified as a “net increase in cash” near the bottom of the statement of cash flows.

Detailed explanation-3: -A cash flow statement is a listing of the flows of cash into and out of the business or project. Think of it as your checking account at the bank. Deposits are the cash inflow and withdrawals (checks) are the cash outflows. The balance in your checking account is your net cash flow at a specific point in time.

There is 1 question to complete.