Income and Expense Statement Name(s): Pedro and Lucy McDermott For the year ending: As of December 31 Pedro and Lucy 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. Dollars Income Wages and salaries $ 20,500 Name: Pedro McDermott Name: Lucy McDermott Pedro's bonus 18,450 2,050 $41,000 Bonuses and commissions (1) Total Income: Expenses Housing Utilities 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 Pedro and $13,838 for Lucy Insurance is paid at the end of each calendar quarter Lucy purchases her commuter pass on the first of each month The parents' loan is money they borrowed from Lucy'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. Food Transportation Central Maine Power T-Mobile Groceries Auto loan Public transportation $5,400 600 300 1,080 4,320 2,400 900 9,738 3,000 700 $28,438 $12,562 Insurance Taxes Fun money Parents' loan (2) Total Expenses: Surplus (Deficit): Cruise to Mexico 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): Pedro and Lucy McDermott For: Three months Ending: March 31 Total for Three Months January February March Income Pedro's salary Lucy'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? Dividend and interest income Pensions and annuities Savings and investments This is because The couple needs to budget for contingencies and save for future goals. The couple needs to increase their taxable income. The couple needs to increase their distributions from their retirement plans. Income and Expense Statement Name(s): Pedro and Lucy McDermott For the year ending: As of December 31 Pedro and Lucy 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. Dollars Income Wages and salaries $ 20,500 Name: Pedro McDermott Name: Lucy McDermott Pedro's bonus 18,450 2,050 $41,000 Bonuses and commissions (1) Total Income: Expenses Housing Utilities 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 Pedro and $13,838 for Lucy Insurance is paid at the end of each calendar quarter Lucy purchases her commuter pass on the first of each month The parents' loan is money they borrowed from Lucy'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. Food Transportation Central Maine Power T-Mobile Groceries Auto loan Public transportation $5,400 600 300 1,080 4,320 2,400 900 9,738 3,000 700 $28,438 $12,562 Insurance Taxes Fun money Parents' loan (2) Total Expenses: Surplus (Deficit): Cruise to Mexico 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): Pedro and Lucy McDermott For: Three months Ending: March 31 Total for Three Months January February March Income Pedro's salary Lucy'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? Dividend and interest income Pensions and annuities Savings and investments This is because The couple needs to budget for contingencies and save for future goals. The couple needs to increase their taxable income. The couple needs to increase their distributions from their retirement plans