7. Preparing a cash budget Brock and Sam started to create a budget (based on last year's income and expense statement) but got stuck. They know that you have learned hovw to create budgets and are asking for your help. They would like you to input the correct values for the first three months of next year. Income and Expense Statement Name(s): Brock and Sam Wilson For the year ending As of December 31 Dollars Income Wages and salaries Name: Brock Wilson $ 20,500 Name: Sam Wilson 18,450 Bonuses and commissions Brock's bonus 2,050 (1) Total Income: $41,000 Expenses Housing $9,456 Utilities Central Maine Power 1,056 528 T-Mobile 1,896 Food Groceries Transportation Auto loan 4,320 Public transportation 4,200 1,576 Insurance Taxes 9,738 Fun money Cruise to Mexico 3,500 Parents' loan 1,225 (2) Total Expenses: $37,495 $3,505 Surplus (Deficit): In addition to the statement, you will need to know the following information: They estimated their net annual income (after taxes and employer deductions) at $15,375 for Brock and $13,838 for Sam . Insurance is paid at the end of each calendar quarter . Sam purchases her commuter pass on the first of each month The parents' loan is money they borrowed from Sam's parents to pay off their student loans. How much they pay each month is determined by them . The fun money listed on the statement is the money spent for a cruise to Mexico. They didn't keep track of any other entertainment expenses (such as dinners out and movies) incurred during the year. Note: Enter a value in each blank cell to get full credit for this exercise, and round all dollar amounts to the nearest whole dollar. Three-Month Cash Budget (By Month) Name(s): Brock and Sam Wilson For: Three months Ending: March 31 February March Total for Three Months January Income Brock's salary Sam's salary Total income Expenses Rent Utilities: Central Maine Power T-Mobile Food Automobile Public transportation Insurance Parents' loan Fun money Total expenses Cash surplus (deficit) Cumulative surplus (deficit) Looking at the completed budget, what single item would you recommend that they add to their budget? O Savings and investments Pensions and annuities O Dividend and interest income This is because O The couple needs to increase their taxable income. O The couple needs to increase their distributions from their retirement plans. O The couple needs to budget for contingencies and save for future goals. 7. Preparing a cash budget Brock and Sam started to create a budget (based on last year's income and expense statement) but got stuck. They know that you have learned hovw to create budgets and are asking for your help. They would like you to input the correct values for the first three months of next year. Income and Expense Statement Name(s): Brock and Sam Wilson For the year ending As of December 31 Dollars Income Wages and salaries Name: Brock Wilson $ 20,500 Name: Sam Wilson 18,450 Bonuses and commissions Brock's bonus 2,050 (1) Total Income: $41,000 Expenses Housing $9,456 Utilities Central Maine Power 1,056 528 T-Mobile 1,896 Food Groceries Transportation Auto loan 4,320 Public transportation 4,200 1,576 Insurance Taxes 9,738 Fun money Cruise to Mexico 3,500 Parents' loan 1,225 (2) Total Expenses: $37,495 $3,505 Surplus (Deficit): In addition to the statement, you will need to know the following information: They estimated their net annual income (after taxes and employer deductions) at $15,375 for Brock and $13,838 for Sam . Insurance is paid at the end of each calendar quarter . Sam purchases her commuter pass on the first of each month The parents' loan is money they borrowed from Sam's parents to pay off their student loans. How much they pay each month is determined by them . The fun money listed on the statement is the money spent for a cruise to Mexico. They didn't keep track of any other entertainment expenses (such as dinners out and movies) incurred during the year. Note: Enter a value in each blank cell to get full credit for this exercise, and round all dollar amounts to the nearest whole dollar. Three-Month Cash Budget (By Month) Name(s): Brock and Sam Wilson For: Three months Ending: March 31 February March Total for Three Months January Income Brock's salary Sam's salary Total income Expenses Rent Utilities: Central Maine Power T-Mobile Food Automobile Public transportation Insurance Parents' loan Fun money Total expenses Cash surplus (deficit) Cumulative surplus (deficit) Looking at the completed budget, what single item would you recommend that they add to their budget? O Savings and investments Pensions and annuities O Dividend and interest income This is because O The couple needs to increase their taxable income. O The couple needs to increase their distributions from their retirement plans. O The couple needs to budget for contingencies and save for future goals