Based on the spreadsheet below, which of the following is a true statement? a. The net cash flow is negative. b. The net cash flow is zero. c. The net cash flow is positive. d. The net cash flow can’t be determined.

c. The net cash flow is positive.

Explanation:

A net positive balance occurs when the total cash inflow exceeds total cash outflows.  Inflow is cash coming in, while outflow is cash leaving the business. In a business, sales represent cash inflows, while expenditure represents cash outflows.

In this case, the sales total to $1,600 while expenses are $1,490. The net cash flow is the difference between the inflows and the outflows. Here, the difference is a positive $110.

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