Question

Jim has $1,000 income from his job and $200 stock dividend income this month. This month Jim has rent and utilities of $300 and he spent $300 on groceries and $200 on clothing. What is his cash inflow this month?
A) $1,200
B) $400
C) $600
D) $500

Answer 1

Answer:

A) $1,200

Explanation:

The cash inflow is that amount which increases the cash balance i.e cash has come whereas cash outflow is that amount which decreases the cash balance

In the given situation, the cash inflow would be

= Income generated from his job + stock dividend income

= $1,000 + $200

= $1,200

And, the cash outflow would be rent & utilities and other types of expenses which decrease the cash balance as the cash is gone