question 1. what was the cash flow for the Jones family before your recommended changes.? 2. what percent of their monthly income was dedicated to housing (include mortgage, property taxes, and homeowners insurance). 3. what percent of their monthly income was dedicated to transportation expenses ( include car payment, car taxes, gas, auto insurance) 4. what are your recommendations changes to the Jones family budget? Be specific, creative but realistic ( for instance Lucy becomes a famous Tik tok personality and earns an additional $50,000/month. is not acceptable suggestion for this assignment) and don't forget to think about opportunities to increase income and decrease expenses.
Look at cell 120. What is the formula for this cell? What does it do? a home Step 2: Complete "Current Budget" sheet APR and Populate the cells in the spreadsheet with the Jones family's current spending ther cal habits described in the introduction and in the paragraphs below. Read the detailed 14. They information given about their finances and enter the MONTHLY amounts into their nce com proper categories in the spreadsheet (you will have to divide annual, semi-annual. to save or quarterly expenses by 12, 6, or 3 to get the right number for the monthly roperty budget). You may need to edit and move numbers around as you read about their spending. You may have to skip around in the spreadsheet. Some of the information in the paragraphs won't be recorded in the spreadsheet. This is all ok! ently po Life is messy, and data isn't always presented in an casy to read manner. Once an Inter you're finished, you should have a comprehensive picture of the Jones' current ills for cash flow situation encapsulated in the spreadsheet. . and S Each month Darius' payroll deductions include $871.41 for federal income tax, Jonese $277.78 for state income tax, and $410.23 for FICA tax. Lucy's monthly deductions intly pu are $495.63 for federal income tax, $158 for state income tax, and $233.33 for 2,000 FICA. Currently $61 (2%% of her salary) is being deducted and deposited into timated Lucy's 401-k every month. chicle averag One of the biggest concerns for Darius and Lucy is getting on top of their also r credit-card debt. Their current MasterCard balance of $14,730 has an 18% APR $33 finance charge and they have a minimum payment of $589.20 monthly. They are hoping to pay off their debt within two years, but this would require an increase in Be their monthly credit card payment to at least $735. equipment (uniforms, bats, cleats, etc). The 10 year old loves ballet and takes lessons at a cost of $200 a month. Ballet shoes and costumes are at an additional cost of $300 per year. Finally, the Joneses are doing their best to protect the family with health and life insurance policies. Currently they pay $397.89 (their monthly share of the company's health insurance package) and $347.82 (their quarterly--paid once every three months--life insurance premium). Step 3: Make a copy of "Current Budget" sheet Once you have finished the spreadsheet for the Jones' current budget, make a copy that you will use for your recommendations. To do this, click the small arrow to the right of the title of the sheet "Jones Family Current Budget" at the bottom of the page. When the menu pops up, click "Duplicate." This will create a new sheet called "Copy of Jones Family Current Budget." Click the small arrow to the right of the title of your new sheet and rename it "New Budget." Step 4: Make a new budget for the Jones family Use the "New Budget" sheet to modify the quantities in such a way that 1) the net cash flow is zero, and 2) the Jones family is making better progress toward their financial goals (i.e. savings and 401-k categories are increased, and credit card debt is being paid down more quickly). You can trim and consolidate expenses in a reasonable way and think about how they might increase their income. You may use the internet or your personal knowledge to research ways to balance their spending with their income. As long as your recommendations are realistic and explained in the questions section, they will be acceptable for this assignment. Be creative! Questions 1) What was the cash flow for the Jones family before your recommended changes? State dri.com Federal Iner SICA Tax
