A Company's Accounts Payable for the Month Are $100,000 and Its

question 95

Multiple Choice

A company's accounts payable for the month are $100,000 and its wages and salaries for the month are $100,000. What is its total outgoing cash flow for the month if its interest payments for the month are $50,000, its accounts receivable payments for the month are $100,000, and there are no other cash outflows for the month?

• A) $250,000
• B) $200,000
• C) $350,000
• D) Cannot tell because we do not know the beginning cash for the month.

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Definitions:

Organizations

Entities composed of multiple individuals working together towards a common purpose or goal, structured in a specific manner.

Innovations

New ideas, devices, or methods that improve something or introduce significant positive change.

Knowing-Doing Gap

The discrepancy between what people know they should do and what they actually do in practice.

Managers

Individuals within an organization responsible for directing, controlling, and administering work groups or departments to achieve the organization's objectives.