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please use the following information to answer the last question Statement of Cash Flow 12/31/2019 INFLOWS Salary - John Salary - Laura $ Annual 135,000

image text in transcribedimage text in transcribed please use the following information to answer the last question

Statement of Cash Flow 12/31/2019 INFLOWS Salary - John Salary - Laura $ Annual 135,000 72,500 207,500 Monthly 11.250 6,042 17,292 TOTAL INFLOWS OUTFLOWS S 2,710 545 Federal income tax - Both State Income Tax - Both Local Income Tax-Both FICA - Both Property Tax 299 32,526 6,545 3,592 15,874 7,020 65,557 1323 Total Taxes 5,463 Savings John 401(k) contribution Laura 403(b) contribution College Savings for Bessie Total Savings 6,750 3,625 4.800 15,175 Ann 1,265 Debt and Interest Payments Mortgage Payment Car Payment Motorcycle Payment John Student Loan Payment Credit Card Payments Total Debt & Interest Payments 12,893 10,245 2,789 3,084 14,400 43,412 1,074 854 232 257 1,200 3,618 $ 244 472 Insurance Premiums Life Insurance Premium Health Insurance Auto & Motorcycle Insurance Homeowner Insurance Total Insurance Premiums 2.925 5,664 5,760 2,020 16,369 480 168 1,364 748 417 680 208 Ordinary living expenses Food Clothing Utilities Auto maintenance Gas Health Out-of-Pocket Expenses Dining Out Entertainment Familly Gifts Charitable Gifts Childcare Total Ordinary Living Expenses 340 125 8,970 5,000 8,160 2.500 4,080 1.500 4,830 7,200 2,500 3,600 9,000 57,340 403 600 208 300 750 4,778 TOTAL OUTFLOWS 197,852 16,488 DISCRETIONARY INCOME 9,648 804 Your clients, Laura and John Rockefeller, are very pleased with your analysis of their financial statements and basic financial analysis; however, they were surprised to see the large unidentified cash flow (surplus) on their cash flow statement. In conversation with you, they realized that they had forgotten to talk about several typical cash outflows. Before starting on this next part of their plan, you will need to revise their 2019 cash flow to include: John Disability Income Insurance 955 Annual Laura Disability Income Insurance 547 Annual Vacations 5,500 Annual House Maintenance and Repairs 4,675 Annual Furnishings and Household Expenses 5,320 Annual Bessie's Activities 130 Monthly Personal Care 110 Monthly Miscellaneous 200 Monthly After getting a more realistic view of their 2019 cash flow, they would like you to help them address some of their financial goals. While they had hinted at some of these goals earlier, in your latest meeting they went into a lot more detail regarding their goals and priorities. The Rockefeller's goals prioritized with the most important listed first: Laura and John would like to maintain 3 months of total outflows (including taxes, savings outflows, and all expenses) in a joint money market account. They would like to combine the funds currently in John's money market account and Laura's rainy-day fund into that joint money market account, and they want you to figure how to get to their target total. But they do not want to include their checking account balance or the life insurance death benefit for this emergency fund reserve. How much do they need to save monthly to get there in 6 months? 12 months

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