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 how 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, 20XX Dollars Income Wages and salaries Name: Brock Wilson $ 19,500 Name: Sam Wilson 17,550 Bonuses and commissions Brock's bonus 1,950 $39.000 (1) Total Income: Expenses Housing $5,400 Utilities Rocky Mountain Power 600 AT&T 300 Food Groceries 1,080 Transportation Auto loan 4,860 Public transportation 2,400 Insurance 900 Taxes 9,263 Fun money Cruise to Mexico 2,500 Parents' loan (2) Total Expenses: 700 $28,003 $10,997 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 $14,625 for Brock and $13,163 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 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. Enter a value in each blank cell to get full credit for this exercise, and round all dollar amounts to the nearest whole dollar. Enter any cash deficit with a minus sign. Three-Month Cash Budget (By Month) Name(s): Brock and Sam Wilson For: Three months Ending: March 31, 20XX January February March Total for Three Months Income Brock's salary $1,219 1,219 Sam's salary 1,097 $ 1,097 $ Total income 2,316 $ $ Expenses Rent 450 $ Utilities: Rocky Mountain Power 50 50 $ AT&T 25 $ $ Food 90 90 $ Automobile 405 $ $ Public transportation 200 200 $ Insurance 0 $ $ Parents' loan 58 $ 58 $ Fun money 208 208 $ $ Total expenses 1,486 $ 1,711 $ Cash surplus (deficit) 830 $ $ $ Cumulative surplus (deficit) $830 $ $ $ Looking at the completed budget, what single item would you recommend that they add to their budget? O Dividend and interest income O Savings and investments O Pensions and annuities This is because: O The couple needs to increase their distributions from their retirement plans. O The couple needs to increase their taxable income. O The couple needs to budget for contingencies and save for future goals. $ 450 s 25 $ 405 $ 0
