Based upon the household’s monthly income, how much can the family afford monthly for a home mortgage? What is the typical percent of total cost for the down payment on a house?

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INFLOWS-ANNUAL Keith's salary Cindy's salary Dividend income Interest income Total inflows OUTFLOWS-ANNUAL Savings and investments Fixed outflows-annual Property taxes Homeowners insurance Utilities Telephone STATEMENT OF CASH FLOWS Keith and Cindy Ross January 1, 2016 to December 31, 2016 (Expected to be similar in 2017) Auto insurance Life insurance policies* Gas/oil/maintenance Credit card payments Umbrella insurance Variable outflows Taxes** Food Medical/dental Clothing/personal care Child care Entertainment/vacation College Kindergarten Total Outflows Net Cash Flow (deficit) FICA-Keith FICA-Cindy $250,000 50,000 5,350 39,050 Federal withholding-Keith Federal withholding-Cindy State-Keith State-Cindy $ 56,600 .9% Additional Medicare tax-MFJ ($50,000 x .009) 3.8% net investment income surtax (estimated-MFJ) 20,000 2,200 7,800 600 1,800 15,500 1,800 *Transfers to trust for life insurance Policy 1 are from net cash flow. **Notes on taxes 8,500 500 $115,114 7,800 2,000 6,000 5,200 10,000 80,000 6,000 $344,400 $ 56,600 $ 58,700 $232,114 $347,414 $($3,014) $ 10,972 [($118,500 x 0.062) + ($250,000 x 0.0145)] 3,825 76,572 6,608 12,000 3,000 450 $ 1,687 $115,114 INFLOWS-ANNUAL Keith's salary Cindy's salary Dividend income Interest income Total inflows OUTFLOWS-ANNUAL Savings and investments Fixed outflows-annual Property taxes Homeowners insurance Utilities Telephone STATEMENT OF CASH FLOWS Keith and Cindy Ross January 1, 2016 to December 31, 2016 (Expected to be similar in 2017) Auto insurance Life insurance policies* Gas/oil/maintenance Credit card payments Umbrella insurance Variable outflows Taxes** Food Medical/dental Clothing/personal care Child care Entertainment/vacation College Kindergarten Total Outflows Net Cash Flow (deficit) FICA-Keith FICA-Cindy $250,000 50,000 5,350 39,050 Federal withholding-Keith Federal withholding-Cindy State-Keith State-Cindy $ 56,600 .9% Additional Medicare tax-MFJ ($50,000 x .009) 3.8% net investment income surtax (estimated-MFJ) 20,000 2,200 7,800 600 1,800 15,500 1,800 *Transfers to trust for life insurance Policy 1 are from net cash flow. **Notes on taxes 8,500 500 $115,114 7,800 2,000 6,000 5,200 10,000 80,000 6,000 $344,400 $ 56,600 $ 58,700 $232,114 $347,414 $($3,014) $ 10,972 [($118,500 x 0.062) + ($250,000 x 0.0145)] 3,825 76,572 6,608 12,000 3,000 450 $ 1,687 $115,114

Answer rating: 100% (QA)

Here are the key points to address from the statement of cash flows Total inflows 344400 ... View the full answer