Bob also provided the following information about the household cash flow (annual basis). The listing included: Revenues Salary $100,000 Investment income 8,000 Outflows Home related $20,000 (includes mortgage interest/principal payments, property taxes, home upkeep & insurance) Food 5,000 Clothing 8,000 Health Care 6,000 Transportation 2,000 Personal 3,000 Recreation 4,000 Cars, Entertainment 9,000 Hobby 1,000 Gifts/Charitable Giving 2,000 Insurances 6,000 Taxes 26,000 Bob said to assume that his salary will rise 6% per year and investment income is 11% a year. His expenses should rise 3 percent per year except for medical, which will grow at a rate of 6% yearly and taxes, which will grow at 7% per year. Bob wanted to ask you as part of this process about ways to help them save. He further told you that he knew his wife, Sarah, was secretly putting away put of her household money into an account in her own name.

Construct a cash flow statement for this year and one for two years from now.