Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Preparation of cash budget. Personal finance problem Sam and Suzy Sizeman need to prepare a cash budget for the last quarter of 2016 in order

image text in transcribed

Preparation of cash budget. Personal finance problem Sam and Suzy Sizeman need to prepare a cash budget for the last quarter of 2016 in order to make sure they can cover their expenditures during the period. Sam and Suzy have been preparing budgets for the past several years and have been able to establish specific percentages for most of their cash outflows. These percentages are based on their take-home pay (that is, monthly utilities normally run 5.3% of monthly take-home pay). The information here can be used to create their fourth-quarter budget for 2016. a. Prepare a quarterly cash budget for Sam and Suzy covering the months October through December 2016 b. Are there individual months that incur a deficit? c. What is the cumulative cash surplus or deficit by the end of December 2016? JUNE JULY JHE Personal Budget for the Period October-December 2016 October i Data Table Income Take-home pay Expenses Housing (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Utilities $4,916 Food Transportation Medical/Dental Clothing Property taxes Appliances Personal care Entertainment Savings Other Excess cash Total expenses Cash surplus or (deficit) Percent 29.8% $ 5.3% $ 10.2% $ 7.2% $ 0.5% $ 3.3% $ 11.7% $ 1.2% $ 2.1% $ 5.9% $ 7.1% $ 5.2% $ 4.1% 5 Income Monthly take-home pay Expenses Housing Utilities Food Transportation Medical/dental Clothing for October & November Clothing for December Property taxes (November only) Appliances Personal Care Entertainment for October & November Entertainment for December Savings Other Excess in cash 29.8% 5.3% 10.2% 7.2% 0.5% 3.3% $449 11.7% 1.2% 2.1% 5.9% $1,474 7.1% 5.2% 4.1% Cumulative cash surplus or (deficit) Print Done Enter any number in the edit fields and then click Check Answer. 4 parts 4 remaining Clear All Check

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Public Finance In Canada

Authors: Harvey S. Rosen, Wen, Snoddon

4th Canadian Edition

0070071837, 978-0070071834

Students also viewed these Finance questions

Question

1. Avoid reading cumulative folders early in the year.

Answered: 1 week ago

Question

Explain the various techniques of Management Development.

Answered: 1 week ago

Question

Understand the requirements for diversity management

Answered: 1 week ago

Question

How would a TM strategy help this company?

Answered: 1 week ago

Question

Outline key ideas in human resource accounting

Answered: 1 week ago