11) Over the coming year, Jim and lona want to save $6000 for a vacation. Their...
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11) Over the coming year, Jim and lona want to save $6000 for a vacation. Their total net income is $65 000/year. They earn about $75/month from investments. They currently have the following expenses: a) Convert all of the income and expense items into monthly amounts. Which are fixed and which are variable? [30] Jim and lona's Expenses bi-weekly mortgage payment and property tax of $675 $650/year for home insurance and $1050/year for car insurance utility costs that average $230/month phone/cable costs of $75/month vehicle lease of $410/month, which includes maintenance gasoline costs of $175/month retirement savings plan contributions of $225 bi-weekly. grocery costs of $160/week clothing costs of $3000/year entertainment costs of $120/week charitable donations of $1000/year miscellaneous costs of $150 bi-weekly Item Income Investments Mortgage payment and Property Tax Home Insurance Car Insurance Utility Cost Phone/Cable Cost Vehicle Lease Gasoline Cost Retirement Savings Plan Contributions Grocery Costs Clothing Costs Fixed or Variable Monthly Amounts Entertainment Costs Charitable Donations Miscellaneous Costs b) Using your answers from part a), design a monthly budget for Jim and lona that shows fixed and variable costs. Recall, you should always round your budget to the nearest dollar value. [10] Salary Investments INCOME TOTAL INCOME: EXPENSES Housing Mortgage Payment/property tax House Insurance Utilities Phone/Cable Transportation Vehicle Lease Gas costs Insurance Food Groceries Other Clothing Entertainment Charitable Donations Miscellaneous expenses Savings Subtotal: Subtotal: Subtotal: Subtotal: TOTAL EXPENSES Balance (Total Income - Total Expenses) Fixed Monthly Amounts (5) Variable Total c) Can Jim and lona meet their savings goal with their current income and expenses? If not, in which categories might they be able to cut back on costs? [2] 11) Over the coming year, Jim and lona want to save $6000 for a vacation. Their total net income is $65 000/year. They earn about $75/month from investments. They currently have the following expenses: a) Convert all of the income and expense items into monthly amounts. Which are fixed and which are variable? [30] Jim and lona's Expenses bi-weekly mortgage payment and property tax of $675 $650/year for home insurance and $1050/year for car insurance utility costs that average $230/month phone/cable costs of $75/month vehicle lease of $410/month, which includes maintenance gasoline costs of $175/month retirement savings plan contributions of $225 bi-weekly. grocery costs of $160/week clothing costs of $3000/year entertainment costs of $120/week charitable donations of $1000/year miscellaneous costs of $150 bi-weekly Item Income Investments Mortgage payment and Property Tax Home Insurance Car Insurance Utility Cost Phone/Cable Cost Vehicle Lease Gasoline Cost Retirement Savings Plan Contributions Grocery Costs Clothing Costs Fixed or Variable Monthly Amounts Entertainment Costs Charitable Donations Miscellaneous Costs b) Using your answers from part a), design a monthly budget for Jim and lona that shows fixed and variable costs. Recall, you should always round your budget to the nearest dollar value. [10] Salary Investments INCOME TOTAL INCOME: EXPENSES Housing Mortgage Payment/property tax House Insurance Utilities Phone/Cable Transportation Vehicle Lease Gas costs Insurance Food Groceries Other Clothing Entertainment Charitable Donations Miscellaneous expenses Savings Subtotal: Subtotal: Subtotal: Subtotal: TOTAL EXPENSES Balance (Total Income - Total Expenses) Fixed Monthly Amounts (5) Variable Total c) Can Jim and lona meet their savings goal with their current income and expenses? If not, in which categories might they be able to cut back on costs? [2]
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Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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