A company's cash sales in January are $200,000, its accounts receivable payments for January are $100,000, its beginning cash for January is $50,000, and there are no other cash inflows for January. Its accounts payable for the January are $100,000 and its wages and salaries for January are $100,000, and its interest payments for January are $50,000. What is its net cash flow for January if there are no other outflows?

Question

Quizplus · Accepted Answer

The net cash flow is calculated as total cash inflows minus total cash outflows. Inflows: $200,000 (cash sales) + $100,000 (accounts receivable) = $300,000. Outflows: $100,000 (accounts payable) + $100,000 (wages and salaries) + $50,000 (interest) = $250,000. Net cash flow = $300,000 - $250,000 = $50,000.

A Company's Cash Sales in January Are $200,000, Its Accounts