3. Rachael is in her senior year at college and is taking the summer and one semester to do a six-month internship in recreational services. The resort where she is interning is providing room, breakfast, and lunch during the five days a week she works, as well as a small stipend of \($250\) per week after taxes. This will be her only source of income over the next six months.

Rachael’s living expenses include her cell phone at

\($65\) per month, groceries at about \($30\) per week, clothing at \($100\) per month, haircuts at \($20\) per month, and approximately \($50\) per week for recreation. Complete a cash flow statement for Rachael and answer the following questions.

a. What is Rachael’s total cash inflow during the internship?

(LO 2-1)

b. What is Rachael’s total cash outflow during the internship?

(LO 2-1)

c. What is Rachael’s net cash flow during the internship?

(LO 2-1)

d. Rachael would like to have at least \($1,000\) saved up at the end of her internship to go on an allinclusive trip to Mexico with her friends before returning for her last semester of classes. Prepare a monthly budget that will help her achieve that goal. (LO 2-4)

e. In the second month of her internship, Rachael dropped her cell phone in the sink and it is not insured.

She would love to get a new smartphone with a data plan. A new phone will cost her \($200\) and the monthly plan will be \($65\) per month. How can she adjust her budget to achieve the short-term goal of a new phone and data plan, as well as the long-term goal of saving enough money for her trip to Mexico? (LO 2-2, LO 2-3)

f. Show how the adjustments in

(e) will alter her budget from the second month onward. (LO 2-4)