Final answer:
To complete the student's cash flow question, we calculated the May receipts by adjusting the cumulative balance and expenses, which led to a determination of the May net cash flow and confirmed the cumulative balance for May.
Step-by-step explanation:
To solve the student's question on net cash flow and cumulative balance, we need to calculate the missing values for the May receipts and then determine the remaining net cash flow and cumulative balance.
Firstly, we have two receipts for Mar and Apr, respectively: $1,155.00 and $1,250.00. We also have expenses for these months, namely: $1,100.00 and $990.00. The provided net cash flows for these months are $55.00 and $260.00.
Step 1
: Calculate the May receipts. As we know, the cumulative balance after April is $360.00. Therefore, the May receipts can be deduced by subtracting the cumulative balance in April from the cumulative balance in May and adding the expenses for May. The calculation is as follows:
(
Cumulative balance in May
-
Cumulative balance in April
) +
Expenses in May
=
May receipts
.
Using the figures from the question ($360.00 - $315.00) + $900.00 = $945.00 for May receipts.
Step 2
: Determine the May net cash flow. The net cash flow is the difference between the receipts and expenses:
May receipts
-
Expenses in May
=
Net cash flow in May
.
Using the figures for May we just calculated ($945.00 - $900.00) = $45.00 for the May net cash flow.
Step 3
: Verify the cumulative balance for May. The cumulative balance is the sum of all net cash flows to date. Since we know the cumulative balance up to April and the May net cash flow, we add these together:
(Cumulative balance in April + Net cash flow in May) = Cumulative balance in May.
So, ($360.00 + $45.00) = $405.00 for the cumulative balance in May.
With these calculations, the complete set of values becomes:
- Mar-Apr-May receipts: $1,155.00, $1,250.00, $945.00
- Expenses: $1,100.00, $990.00, $900.00
- Net cash flow: $55.00, $260.00, $45.00
- Cumulative balance: $315.00, $360.00, $405.00