In a cash flow budget, what is the total cash inflow if the available cash is $6,500 and cash outflow is $4,600?

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To determine the total cash inflow in a cash flow budget, it's important to focus on the relationship between available cash and cash outflows. The available cash, which stands at $6,500, represents the cash that is currently on hand. Cash outflows denote the amount being spent, which in this case is $4,600.

The total cash inflow can be calculated by taking the available cash and adding the cash outflows. However, the question requires understanding that the total cash inflow is essentially the money the business has brought in plus what it already has. Since we know the available cash and need to balance the outflows, we can derive the cash inflow from the context of cash management.

Calculating it as follows gives clarity:

  1. Start with available cash: $6,500.
  2. Recognize cash outflow: $4,600 decreases cash held.
  3. The remaining cash after outflow: [ 6,500 - 4,600 = 1,900. ]

This remaining amount signifies the net cash left after considering outflows, but it doesn’t directly contribute to the inflow. The total inflow stands at $6,500, not reduced by

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