Stephanie Spratt comes to you for advice. Due to a very weak economy, she was just laid off from her job. She will receive $1,200 per month for the next six months.
1. Offer advice to her on how she should revise her cash flow statement based on an income of $1,200 per month, assuming that she expects to be rehired within the next six months.
2. Assume that Stephanie might remain unemployed for an additional six months. Identify the possible ways that she could revise her personal cash budget and balance sheet to survive.
3. Explain the interaction between the personal balance sheet and the personal cash flow statement in a situation like this when income is not sufficient to cover monthly bills.