Part III: Preparing cash budget

Use a Word document to answer and submit the questions into Canvas.

Landon and Naomi Gray are preparing their cash budget. Help the Grays reconcile the following differences,

giving reasons to support your answers.

Their only source of income is Landon's salary, which amounts to $$5,000$ a month before taxes. Landon

wants to show the $$5,000$ as their monthly income, whereas Naomi argues that his take$-$home pay of $$3,917$

is the correct value to show.

Naomi wants to make a provision for fun money, an idea that Landon cannot understand. He asks, "Why do

we need fun money when everything is provided for in the budget?"