Question
Paula Sanchez is trying to determine her 2014 finances. Paula's actual 2013 finances were as follows: Income: Assets: Gross income $ 66,500 Checking account $
Paula Sanchez is trying to determine her 2014 finances. Paula's actual 2013 finances were as follows:
Income: Assets: Gross income $ 66,500 Checking account $ 1,960 Interest income 410 Savings account 9,080 Total $ 66,910 Automobile 1,700 Personal property 14,500 Expenses: Total $ 27,240 Living $ 26,200 Liabilities: Insurance premium 410 Note to bank 5,000 Taxes 14,900 Net worth $ 22,240 ($27,240 $5,000) Medical 620 Investment 3,700 Total $ 45,830
Paula believes her gross income will double in 2014 but her interest income will decrease $150. She plans to reduce her 2014 living expenses by one-fourth. Paula's insurance company wrote a letter announcing that her insurance premiums would triple in 2014. Her accountant estimates her taxes will decrease $250 and her medical costs will increase $410. Paula also hopes to cut her investments expenses by one-half. Paula's accountant projects that her savings and checking accounts will each double in value. On January 2, 2014, Paula sold her automobile and began to use public transportation. Paula forecasts that her personal property will decrease by one-fifth. She has sent her bank a $375 check to reduce her bank note.
a. Could you give Paula an updated list of her 2014 finances?
Income: Assets: Gross income $ Checking account $ Interest income Savings account Total $ Personal property Expenses: Total $ Living $ Liabilities: Insurance premium Note to bank Taxes Net worth $ Medical Investment Total $
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