Impact on Net Cash Flow. Angela makes a budget based on her personal cash flow statement....

Impact on Net Cash Flow. Angela makes a budget based on her personal cash flow statement. In two months, she must pay $375 for tags and taxes on her car. How will this payment affect her net cash flow for that month? Suggest ways that Angela might handle this situation.

Expert Solution

Payment of $375 for tax and Taxes on her car would be leading to OUTFLOW of cash from her over all cash statements and income.

This will be leading to reduction of for overall cash surplus and this will be leading to outflow of cash. This will be reducing the cash balance of that particular month and it would lead to outflow of cash.

This payment can be handled through proactive management of budgetary estimates and she should be accounting for all provisions for unknown expenses and she should be maintaining an emergency cash account in order to deal with such immediate payment.

jeff jeffy answered 2 years ago

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