Firm Z accounts payable for the month are $200,000 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,its accounts receivable payments for the month are $100,000,and there are no other cash outflows for the month?
A)$250,000
B)$450,000
C)$350,000
D)Cannot tell because we do not know the beginning cash for the month.

Question

Quizplus · Accepted Answer

To calculate total outgoing cash flow for the month, we need to add up all the cash outflows for the month.

Outflows:
Accounts payable: $200,000
Wages and salaries: $100,000
Interest payments: $50,000
Accounts receivable payments: $100,000

Total outgoing cash flow = $200,000 + $100,000 + $50,000 + $100,000 = $450,000

Therefore, the correct answer is option B.

Firm Z Accounts Payable for the Month Are $200,000 and Its