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To determine which spreadsheet shows the financial plan with the greatest net cash flow, let's analyze the given spreadsheet:
\begin{tabular}{|c|c|c|}
\hline 4 & A & B \\
\hline 1 & Cash Inflows & \\
\hline 2 & Disposable income & [tex]$\$[/tex] 2,350[tex]$ \\ \hline 3 & Interest on deposits & $[/tex]\[tex]$ 0$[/tex] \\
\hline 4 & Income from investments & [tex]$\$[/tex] 0[tex]$ \\ \hline 5 & Total Cash Inflow & $[/tex]\[tex]$ 2,350$[/tex] \\
\hline 6 & & \\
\hline 7 & Cash outflows & \\
\hline 8 & Rent & [tex]$\$[/tex] 800[tex]$ \\ \hline 9 & Utilities & $[/tex]\[tex]$ 235$[/tex] \\
\hline 10 & Cable and telephone & [tex]$\$[/tex] 125[tex]$ \\ \hline 11 & Groceries & $[/tex]\[tex]$ 400$[/tex] \\
\hline 12 & Car expenses & [tex]$\$[/tex] 320[tex]$ \\ \hline 13 & Recreation & $[/tex]\[tex]$ 175$[/tex] \\
\hline 14 & Insurance & [tex]$\$[/tex] 200[tex]$ \\ \hline 15 & Miscellaneous & $[/tex]\[tex]$ 80$[/tex] \\
\hline
\end{tabular}
### Step-by-Step Solution
1. Cash Inflows:
- Total Cash Inflow = \[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 3. Sum of Cash Outflows: - Total Cash Outflow = \$[/tex]800 + \[tex]$235 + \$[/tex]125 + \[tex]$400 + \$[/tex]320 + \[tex]$175 + \$[/tex]200 + \[tex]$80 = \$[/tex]2,335
4. Net Cash Flow Calculation:
- Net Cash Flow = Total Cash Inflow - Total Cash Outflow
- Net Cash Flow = \[tex]$2,350 - \$[/tex]2,335 = \[tex]$15 Thus, the net cash flow for this financial plan is \$[/tex]15. To decide which spreadsheet has the greatest net cash flow, a comparison would be made among all available spreadsheets by calculating the net cash flow for each one.
Given this particular spreadsheet, the net cash flow is found to be \$15.
\begin{tabular}{|c|c|c|}
\hline 4 & A & B \\
\hline 1 & Cash Inflows & \\
\hline 2 & Disposable income & [tex]$\$[/tex] 2,350[tex]$ \\ \hline 3 & Interest on deposits & $[/tex]\[tex]$ 0$[/tex] \\
\hline 4 & Income from investments & [tex]$\$[/tex] 0[tex]$ \\ \hline 5 & Total Cash Inflow & $[/tex]\[tex]$ 2,350$[/tex] \\
\hline 6 & & \\
\hline 7 & Cash outflows & \\
\hline 8 & Rent & [tex]$\$[/tex] 800[tex]$ \\ \hline 9 & Utilities & $[/tex]\[tex]$ 235$[/tex] \\
\hline 10 & Cable and telephone & [tex]$\$[/tex] 125[tex]$ \\ \hline 11 & Groceries & $[/tex]\[tex]$ 400$[/tex] \\
\hline 12 & Car expenses & [tex]$\$[/tex] 320[tex]$ \\ \hline 13 & Recreation & $[/tex]\[tex]$ 175$[/tex] \\
\hline 14 & Insurance & [tex]$\$[/tex] 200[tex]$ \\ \hline 15 & Miscellaneous & $[/tex]\[tex]$ 80$[/tex] \\
\hline
\end{tabular}
### Step-by-Step Solution
1. Cash Inflows:
- Total Cash Inflow = \[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 3. Sum of Cash Outflows: - Total Cash Outflow = \$[/tex]800 + \[tex]$235 + \$[/tex]125 + \[tex]$400 + \$[/tex]320 + \[tex]$175 + \$[/tex]200 + \[tex]$80 = \$[/tex]2,335
4. Net Cash Flow Calculation:
- Net Cash Flow = Total Cash Inflow - Total Cash Outflow
- Net Cash Flow = \[tex]$2,350 - \$[/tex]2,335 = \[tex]$15 Thus, the net cash flow for this financial plan is \$[/tex]15. To decide which spreadsheet has the greatest net cash flow, a comparison would be made among all available spreadsheets by calculating the net cash flow for each one.
Given this particular spreadsheet, the net cash flow is found to be \$15.
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