Stan and Elizabeth Carpenter are preparing their 2016 cash budget. Help the Carpenters reconcile the following differences,
Question:
a. Their only source of income is Stan’s salary, which amounts to $5,000 a month before taxes. Elizabeth wants to show the $5,000 as their monthly income, whereas Stan argues that his take-home pay of $3,917 is the correct value to show.
b. Elizabeth wants to make a provision for fun money, an idea that Stan cannot understand. He asks, “Why do we need fun money when everything is provided for in the budget?”
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Related Book For
Personal Financial Planning
ISBN: 978-1111971632
13th edition
Authors: Lawrence J. Gitman, Michael D. Joehnk, Randy Billingsley
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