Final answer:
A company with a cash inflow of $300,000 and a cash outflow of $400,000 has a negative cash flow of -$100,000, indicating higher expenditures than income. An economy is not at equilibrium if its expenditures do not match its output. A bank's net worth can be computed by setting up a T-account balance sheet and calculating assets minus liabilities.
Step-by-step explanation:
A company that experiences a cash inflow of $300,000 and a cash outflow of $400,000 would have a negative cash flow, specifically a cash flow of -$100,000. This indicates that the company is spending more money than it is receiving over a given period. In terms of national income, an economy is not at equilibrium if the total expenditures do not equal total output. If national income is $300 and expenditures are either above or below this figure, it would indicate that the economy is not in equilibrium. At this point, to reach equilibrium, expenditures would need to be adjusted to match the output exactly.
Moving on to the banking example, setting up a T-account balance sheet involves listing the assets and liabilities for the bank. If the bank has deposits of $400, reserves of $50, government bonds worth $70, and has made loans of $500, the balance sheet would be structured as follows:
The net worth, or equity, of the bank is calculated by subtracting liabilities from assets. In this case, the net worth would be $50 (Assets of $620 - Liabilities of $400).