Cora Hamilton Learns to Budget Cora Hamilton recently graduated from college and moved to Charlotte to take a job as a market research analyst. She was pleased to be financially independent and was sure that, with her $45,000 salary, she could cover her living expenses and have plenty of money left over to furnish her studio apartment and enjoy the wide variety of social and recreational activities available in Charlotte. She opened several department-store charge accounts and obtained a bank credit card. For a while, Cora managed pretty well on her monthly take-home pay of $2,893, but by the end of 2020, she was having trouble fully paying all her credit card charges each month. Concerned that her spending had gotten out of control and that she was barely making it from paycheck to paycheck, she decided to list her expenses for the past calendar year and develop a budget. She hoped not only to reduce her credit card debt but also to begin a regular savings program. Cora prepared the following summary of expenses for 2020: Item Rent Auto insurance Auto loan payments Auto expenses (gas, repairs, and fees) Clothing Installment loan for stereo Personal care Phone Cable TV Gas and electricity Medical care Dentist Groceries Dining out Furniture purchases Recreation and entertainment Annual Expenditure $11,000 1,855 3,840 1,560 3,200 540 424 492 452 1,080 120 70 2,500 2,600 1,080 2,900 600 Other expenses After reviewing her 2020 expenses, Cora made the following assumptions about her expenses for 2021: 1. All expenses will remain at the same levels, with these exceptions: a. Auto insurance, auto expenses, gas and electricity, and groceries will increase 5 percent. b. Clothing purchases will decrease to $2,250. c. Phone and cable TV will increase $5 per month. d. Furniture purchases will decrease to $636, most of which is for a new television. e. She will take a one-week vacation to Utah in July, at a cost of $2,100. 2. All expenses will be budgeted in equal monthly installments except for the vacation and these items: a. Auto insurance is paid in two installments due in June and December. b. She plans to replace the brakes on her car in February, at a cost of $220. c. Visits to the dentist will be made in March and September. Name(s) Cora Hamilton 3. She will eliminate her bank credit card balance by making extra monthly payments of $75 during each of the first six months. 4. Regarding her income, Cora has just received a small raise, so her take-home pay will be $3,200 per month. 2. Make any necessary adjustments to Cora's estimated monthly expenses, and revise her annual cash budget for the year ending December 31, 2021, using Worksheet 2.3. Enter all expense amounts as positive values. Enter cash deficits, if any, as negative values. Round your answers to nearest cent. ANNUAL CASH BUDGET BY MONTH Cora Hamilton Learns to Budget Cora Hamilton recently graduated from college and moved to Charlotte to take a job as a market research analyst. She was pleased to be financially independent and was sure that, with her $45,000 salary, she could cover her living expenses and have plenty of money left over to furnish her studio apartment and enjoy the wide variety of social and recreational activities available in Charlotte. She opened several department-store charge accounts and obtained a bank credit card. For a while, Cora managed pretty well on her monthly take-home pay of $2,893, but by the end of 2020, she was having trouble fully paying all her credit card charges each month. Concerned that her spending had gotten out of control and that she was barely making it from paycheck to paycheck, she decided to list her expenses for the past calendar year and develop a budget. She hoped not only to reduce her credit card debt but also to begin a regular savings program. Cora prepared the following summary of expenses for 2020: Item Rent Auto insurance Auto loan payments Auto expenses (gas, repairs, and fees) Clothing Installment loan for stereo Personal care Phone Cable TV Gas and electricity Medical care Dentist Groceries Dining out Furniture purchases Recreation and entertainment Annual Expenditure $11,000 1,855 3,840 1,560 3,200 540 424 492 452 1,080 120 70 2,500 2,600 1,080 2,900 600 Other expenses After reviewing her 2020 expenses, Cora made the following assumptions about her expenses for 2021: 1. All expenses will remain at the same levels, with these exceptions: a. Auto insurance, auto expenses, gas and electricity, and groceries will increase 5 percent. b. Clothing purchases will decrease to $2,250. c. Phone and cable TV will increase $5 per month. d. Furniture purchases will decrease to $636, most of which is for a new television. e. She will take a one-week vacation to Utah in July, at a cost of $2,100. 2. All expenses will be budgeted in equal monthly installments except for the vacation and these items: a. Auto insurance is paid in two installments due in June and December. b. She plans to replace the brakes on her car in February, at a cost of $220. c. Visits to the dentist will be made in March and September. Name(s) Cora Hamilton 3. She will eliminate her bank credit card balance by making extra monthly payments of $75 during each of the first six months. 4. Regarding her income, Cora has just received a small raise, so her take-home pay will be $3,200 per month. 2. Make any necessary adjustments to Cora's estimated monthly expenses, and revise her annual cash budget for the year ending December 31, 2021, using Worksheet 2.3. Enter all expense amounts as positive values. Enter cash deficits, if any, as negative values. Round your answers to nearest cent. ANNUAL CASH BUDGET BY MONTH