Firm Y accounts payable for the month are $150,000 and its wages and salaries for the month are $100,000.What is its total outgoing cash flow for the month if its interest payments for the month are $50,000 and its beginning cash for the month is $50,000,there are no other cash outflows for the month?
A)$400,000
B)$250,000
C)$300,000
D)$350,000

Question

Quizplus · Accepted Answer

Total outgoing cash flow for the month can be calculated as follows:
= Beginning cash + Accounts payable + Wages and salaries + Interest payments
= $50,000 + $150,000 + $100,000 + $50,000
= $350,000
Therefore, the correct option is C) $300,000.

Firm Y Accounts Payable for the Month Are $150,000 and Its