Question

If a company's bank statements shows an overdraft of r 12 000 at the beginning of the month and a favourable balance of r 50 000 at the end of that particular month, determine the amount of either cash inflow or outflow during the month?

Answer 1

The amount of cash inflow or outflow during the month is r 62 000.

Step-by-step explanation:

To determine the amount of either cash inflow or outflow during the month, we need to look at the change in the company's bank balance. At the beginning of the month, there was an overdraft of r 12 000, which means the company had negative cash flow. However, by the end of the month, the balance was favorable at r 50 000, indicating positive cash flow. Therefore, during the month, the company experienced a cash inflow of r 62 000 (r 50 000 minus r 12 000).