Question

XYZ Corp. recorded service revenues of $150,000 in 2016, of which $80,000 were on credit and $70,000 were for cash. Moreover, of the $80,000 credit sales for 2016, XYZ collected $35,000 cash on those receivables before year-end 2016. The company also paid $30,000 cash for 2016 wages. Its employees also earned another $20,000 in wages for 2016, which were not yet paid at year-end 2016. How much net cash inflow did the company generate in 2016

Answer 1

Answer: $75,000

Step-by-step explanation:

Net Cash inflow refers to the actual cash that came into the company less the cash that went out.

Net cash inflow = Cash inflow - Cash outflow

= Cash from sales + Cash from receivables collection - cash wages

= 70,000 + 35,000 - 30,000

= $75,000