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

1 why do researchers use inferential statistics2

1. Why do researchers use inferential statistics? 2. Distinguish between the null hypothesis and the experimental hypothesis. 3. When analyzing data, why do researchers test the null hypothesis rather than the experiment ...

1 how does lowest tco differ from lowest purchase price2

1. How does lowest TCO differ from lowest purchase price? 2. What is the underlying rationale that explains why firms should segment their purchase requirements? 3. Explain how constraints in manufacturing are interrelat ...

Writing assignmentthe capital budgeting decision techniques

Writing Assignment: The capital budgeting decision techniques discussed so far all have strengths and weaknesses; however, they do comprise the most popular rules for valuing projects. On the other hand, valuing an entir ...

1 what types of fees and conditions are prohibited under

1. What types of fees and conditions are prohibited under RESPA? 2. For what items may a lender require escrow accounts from a borrower?

What is the relation between a strategy and an objective

What is the relation between a strategy and an objective? How are comparative advantages different from competitive advantages? What is a strategic plan? What is a financial plan, and how does it relate to a company's st ...

1 pessimists commonly claim that if you drop a piece of

1. Pessimists commonly claim that, if you drop a piece of buttered bread, it will probably land butter-side down. Identify the mode of inquiry (authority, rational, empirical) you would use to evaluate this claim, and br ...

1 compare the ethical dilemmas faced by behavioral

1. Compare the ethical dilemmas faced by behavioral scientists with those faced by scientists in other scientific fields. What are the particular ethical problems that arise in behavioral science research? 2. Explain why ...

In a random sample of 63 students in 2000 3 got first class

In a random sample of 63 students in 2000, 3 got first class honours. A random sample of 42 is conducted in 2009 and 7 got firsts. (a) Give a 95 percent confidence interval for the percentage who got firsts in 2000. (b) ...

1 what are time-series research designs and how are they

1. What are time-series research designs, and how are they used to learn about changes in behavior over time? 2. What types of independent variables can be used in participant-variable research designs, and what conclusi ...

If a stock has both diversifiable risk and nondiversifiable

If a stock has both diversifiable risk and nondiversifiable risk, which, if any, of these risks are considered in the pricing of the asset? In the context of the CAPM, what is the term represented by E(RM) - Rf? Explain ...

  • 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

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

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen