Question

Bob's monthly net income is $3,000. Bob pays $950 for rent, $250 for all

utilities, and $1,850 in other fixed and variable expenses. What is Bob's
cash flow?
A.Negative cash flow, $50
B.Negative cash flow, $3,050
C.ositive cash flow, $3,050
D.Positive cash flow, $50

Answer 1

A: Negative cash flow, $50

Explanation:

Bob makes $3000 a month.

Every month he has to pay $950:

3000 - 950 = 2050

Pay an additional $250:

2050 - 250 = 1800

And another additional $1850:

1800 - 1850 = -50

Therefore, he has a negative cash flow of $50 a month.