The net cash flow which is the excess of inflows over outflows is $110, hence, the correct option is:
c. The net cash flow is positive
What are inflows and outflows?
The inflows are cash received by the individual which increase cash balance where cash outflows are expenses, which reduce the balance of cash.
Based on the above, the total inflows of the individual is computed thus:
total inflows=disposable income+ interest on deposit +income from investment
total inflows=1600+0+0
total inflows=$1,600
Total outflows are as well summed as below:
total outflows=rent +utilities +cable and telephone +groceries+ car expenses+ recreation+ insurance + miscellaneous
total outflows=575+120+80+320+150+80+115+50
total outflows=$1,490
net cash flow=total inflows-total outflows
net cash flow=$1,600-$1,490
net cash flow=$110
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