A company's accounts payable for the month are $100,000 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) $200,000
C) $350,000
D) Cannot tell because we do not know the beginning cash for the month.

Question

Quizplus · Accepted Answer

The total outgoing cash flow is the sum of accounts payable, wages and salaries, and interest payments: $100,000 + $100,000 + $50,000 = $250,000. Accounts receivable is not an outgoing cash flow.

A Company's Accounts Payable for the Month Are $100,000 and Its