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Please study the case and fill the worksheet. The Sampsons realize that the first step toward achieving their financial goals is to create a budget
Please study the case and fill the worksheet.
The Sampsons realize that the first step toward achieving their financial goals is to create a budget capturing their monthly cash inflows and outflows. Dave and Sharon's com bined income is now about $4,000 per month after taxes. With the new cash inflows from Sharon's paycheck, the Sampsons have started spending more on various after-school programs for their children, such as soccer leagues and tennis lessons. In Chapter 1, they resolved to save a total of $800 per month for a new car and for their children's education. Reviewing their checking account statement from last month, Dave and Sharon identify the following monthly household payments: $900 for the mortgage payment ($700 loan payment plus home insurance and property taxes) (Note that this loan payment is high because the Sampsons obtained the mortgage when interest rates were high. They are in the process of refinancing their mortgage with a lower interest rate; this will be discussed in Chapter 10.) $60 for Internet $80 for electricity and water $70 for cellular expenses $500 for groceries $160 for a health care plan provided by Dave's employer (this expense is deducted directly from Dave's salary) e iew several credit card bills to estimate their other typical monthly The Sampsons also rev expenses: About $180 for clothing About $300 for car expenses (insurance, maintenance, and gas) About $100 for school expenses About $1,000 for recreation and programs for the children . About $20 as a minimum payment on their existing credit card balance To determine their net worth, the Sampsons also assess their assets and liabilities, which include the following: $300 in cash $1,700 in their checking account Home valued at $100,000 Furniture worth about $3,000 Sharon's car, which needs to be replaced soon, is worth about $1,000; Dave's car is worth approximately $8,000 . They owe $90,000 on their home mortgage and about $2,000 on their credit cards Go to the worksheets at the end of this chapter to continue this case Step by Step Solution
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