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Rachael is in her senior year at college and is taking the summer and one semester to do a six-month internship in recreational services. The
Rachael is in her senior year at college and is taking the summer and one semester to do a six-month internship in recreational services. The resort where she is interning is providing room, breakfast, and lunch during the five days a week she works, as well as a small stipend of $250 per week after taxes. This will be her only source of income over the next six months. Rachael's living expenses include her cell phone at $65 per month, groceries at about $30 per week, clothing at $100 per month, haircuts at $20 per month, and approximately $50 per week for recreation. Complete a cash flow statement for Rachael and answer the following questions. a. What is Rachael's total cash inflow during the internship? b. What is Rachael's total cash outflow during the internship? c. What is Rachael's net cash flow during the internship? d. Rachael would like to have at least $1,000 saved up at the end of her internship to go on an allinclusive trip to Mexico with her friends before returning for her last semester of classes. Prepare a monthly budget that will help her achieve that goal. e. In the second month of her internship, Rachael dropped her cell phone in the sink and it is not insured. She would love to get a new smartphone with a data plan. A new phone will cost her $200 and the monthly plan will be $65 per month. How can she adjust her budget to achieve the short-term goal of a new phone and data plan, as well as the long-term goal of saving enough money for her trip to Mexico? f. Show how the adjustments in (e) will alter her budget from the second month onward
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