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In: Finance

Firm Y accounts payable for the month are​ $150,000 and its wages and salaries for the...

Firm Y accounts payable for the month are​ $150,000 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 and its beginning cash for the month is​ $50,000, there are no other cash outflows for the​ month?

A.

​$350,000

B.

​$250,000

C.

​$400,000

D.

​$300,000

Solutions

Expert Solution

Question:

Firm Y accounts payable for the month are​ $150,000 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 and its beginning cash for the month is​ $50,000, there are no other cash outflows for the​ month?

A. $350,000

B. $250,000

C. $400,000

D. $300,000

Ans D. $300,000

Explanatory Solution:

Given:

Accounts Payable for the Month = $ 150,000

Wages and Salaries for the Month = $ 100,000

Interest Payments for the Month = $ 50,000

Beginning Cash for the Month = $ 50,000

Other Cash Outflows for the​ Month = 0

To Calculate:

Total Outgoing Cash Flow for the Month

Formula:

We know that,

Total Outgoing Cash Flow for the Month = Accounts Payable for the Month + Wages and Salaries for the Month + Interest Payments for the Month + Other Cash Outflows for the​ Month

On putting the value in the formula, we get,

Total Outgoing Cash Flow for the Month = $ 150,000 + $100,000 + $ 50,000

= $ 300,000

Total Outgoing Cash Flow for the Month = $ 300,000

Ans D. $300,000

jeff jeffy answered 1 year ago
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