Dan and June started to create a budget (based on last years income and expense statement) but got stuck. They know that you have learned how to create budgets and are asking for your help. They would like you to input the correct values for the first three months of next year.

Income and Expense Statement

Name(s): Dan and June Kuryaki
For the year ending:	As of December 31
		Dollars
Income
Wages and salaries	Name: Dan Kuryaki	$ 21,000
	Name: June Kuryaki	18,900
Bonuses and commissions	Dans bonus	2,100
(1) Total Income:		$42,000
Expenses
Housing		$5,400
Utilities	Central Maine Power	600
	T-Mobile	300
Food	Groceries	1,080
Transportation	Auto loan	3,780
	Public transportation	2,400
Insurance		900
Taxes		9,975
Fun money	Cruise to Mexico	2,500
Parents loan		700
(2) Total Expenses:		$27,635
Surplus (Deficit):		$14,365

In addition to the statement, you will need to know the following information:

	They estimated their net annual income (after taxes and employer deductions) at $15,750 for Dan and $14,175 for June
	Insurance is paid at the end of each calendar quarter
	June purchases her commuter pass on the first of each month
	The parents loan is money they borrowed from Junes parents to pay off their student loans. How much they pay each month is determined by them
	The fun money listed on the statement is the money spent for a cruise to Mexico. They didnt keep track of any other entertainment expenses (such as dinners out and movies) incurred during the year.

Note: Enter a value in each blank cell to get full credit for this exercise, and round all dollar amounts to the nearest whole dollar.

Three-Month Cash Budget (By Month)
Name(s): Dan and June Kuryaki
For: Three months		Ending: March 31
	January	February	March	Total for Three Months
Income
Dans salary
Junes salary
Total income
Expenses
Rent
Utilities:
Central Maine Power
T-Mobile
Food
Automobile
Public transportation
Insurance
Parents loan
Fun money
Total expenses
Cash surplus (deficit)
Cumulative surplus (deficit)

Looking at the completed budget, what single item would you recommend that they add to their budget?

Pensions and annuities

Savings and investments

Dividend and interest income

This is because:

The couple needs to budget for contingencies and save for future goals.

The couple needs to increase their taxable income.

The couple needs to increase their distributions from their retirement plans.