Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

problem: Ronna and Sherman Terrel are creating a budget for 2003. Ronna is a systems analyst with an airplane producer, & Sherman is working on a master's degree in educational psychology. The Terrels do not have any children or other dependents. Ronna estimates her salary will be about $39,996 in 2003; Sherman expects to work only during the summer months, doing painting & remodeling work for a building contractor. He anticipates an income from those activities of $3000 a month in June, July, & August. Sherman does have a scholarship that pays his tuition and also provides dollar 3,600 a year of which dollar 2400 is payable in February and $1200 is payable in October. The Terrels don't expect to have any other income in 2003.

Ronna & Sherman have listed their expected total expenses in 2003 as follows:

Housing (rent)

$6,600

Transportation

5100

Food (includes dining out)

8100

Utilities

3000

Payroll taxes:

 

Donna

12,000

Sherman

1500

Insurance:

 

Life - payable in May

720

Auto - payable in January

1,500

Leisure and entertainment:

 

Vacation in May

1,200

All others

1,800

Clothing

1,500

Others

$3,900

Total Expenses

$46,920

The Terrels will begin 2003 with about $1,000 in liquid assets, & they prefer not to draw this balance below dollar 600 at any time during the year.


[A] Create a monthly income and expense plan for the Terrels in 2003.

[B] On the basis of the plan you have just prepared, Argue the Terrels expected financial situation in 2003. Describe if you foresee any difficulties.

[C] During the quarter break in April, Sherman's employer landed a major remodeling project and asked for Sherman's help. Sherman agreed, and he expects to earn dollar 1,500 from the job before taxes but probably won't accept a check until early June. Discuss how this unexpected event might change the Terrels' activities & their budget for the balance of 2003. It is not necessary to create a revised monthly income and expense plan but do refer to specific accounts & amounts [make appropriate assumptions] in your discussion.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M921521

Have any Question? 


Related Questions in Basic Finance

Go to wwwbankratecomcheckingaspx and answer the following

Go to www.bankrate.com/checking.aspx and answer the following questions: a. What bank in what city, nationally, will give you the highest rate on an MMA? b. What bank in what city, locally, will give you the highest rate ...

1 suppose financial intermediaries did not exist and only

1. Suppose financial intermediaries did not exist and only direct finance was possible. How would this affect the process of an individual buying a car or a house? 2. During the 2007-2009 recession, many people who had t ...

Apex corporation is considering the purchase of pinnacle

Apex Corporation is considering the purchase of Pinnacle Company in a stock-forstock exchange. Selected data on the two companies are shown in the following table: Apex Pinnacle Sales(millions) $750 $175 Earning after ta ...

A researcher examines the relationship between the quality

A researcher examines the relationship between the quality of breakfast and academic performance for a group of elementary-school children. For each child, the researcher interviews the parents to obtain information abou ...

Explain the difference between path-dependent options and

Explain the difference between path-dependent options and path-independent options and give examples of each? Give an example of a situation in which someone might wish to use a barrier option? Explain the advantages and ...

1 distinguish between construct and criterion-related

1. Distinguish between construct and criterion-related validity. 2. Distinguish between convergent and discriminant validity. Do these terms refer to types of construct validity or criterion-related validity?

1 explain how the publication financial analysis of the

1. Explain how the publication Financial Analysis of the Motor Carrier Industry could be used to determine the percentage of total revenue a firm has in relation to similar trucking firms. 2. Annual reports that insuranc ...

1 what are the general requirements regarding income

1. What are the general requirements regarding income, investments, and dividends with which a REIT must comply to maintain its tax-exempt status? 2. What are the three principal types of REITs? 3. What is a mortgage REI ...

Examine the following pairs of calls which differ only by

Examine the following pairs of calls, which differ only by exercise price. Determine whether any violate the rules regarding relationships between American options that differ only by exercise price a. August 155 and 160 ...

1 show that in the atsp formulation the connectivity

1. Show that, in the ATSP formulation, the connectivity constraints (6.61) and the subtour elimination constraints (6.62) are equivalent. 2. Show that the number of vertices of odd degree in a graph is even. 3. Let G = ( ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro