Harvey and Marlyn Elliott are preparing their 2011 cash budget. Help the Elliotts reconcile the following differences, giving reasons to support your answers.

a. Their only source of income is Harvey’s salary, which amounts to $5,000 a month before taxes. Marlyn wants to show the $5,000 as their monthly income, whereas Harvey argues that his take-home pay of $3,917 is the correct value to show.

b. Marlyn wants to make a provision for fun money, an idea that Harvey cannot understand. He asks, “Why do we need fun money when everything is provided for in the budget?”