function correctly. Click here to learn more Attenti: Due to is Google Chrome, this page way 9. Preparing a budget . A cash-flow budget uses the same format as a cash-flow statement. It is prepared on a monthly basis and it reflects budgeted income and expenses. In addition to the cash-flow statement, Deon and May made a list of budget assumptions, listed for you here: Deon's income will increase by 5%, effective January 1. His bonus is generally 10% of his income in the previous year, and he receives it in January May's raise will be 3%, effective January 1. Interest and dividend income will conservatively be the same in 2017 as it was in 2016 and will be received on a monthly basis. Mortgage payments will be the same in 2017 as they were in 2016. Federal income taxes are estimated at 20%, state income taxes at 6%, and social security taxes at 7.65% of wages, including Deon's bonus. Property insurance and property taxes are paid every six months, in June and December. The amount is expected to be the same in 2017 as it was in 2016 . May will contribute $60 per week for the employee portion of their medical insurance. According to her pay schedule, April and June are five-week months. Auto insurance is paid at the end of each calendar quarter and should not be more than it was in 2016. Deon and May would like to purchase a new car in the next few years and will put $500 a month away specifically for that purpose. Deon and May don't expect the amount of variable expenses to change in 2017 except that they would like to double their charitable contributions and go on a vacation to Ireland in June. The vacation will cost $6,000. Gift purchases are made mostly around the holidays, so Deon and May are planning to pay half of the gift expense in December and half in January when the credit card bill comes in Water and sewer is billed quarterly, in January, April, July, and October. The cost of heat should be spread over six months from November to April . All other variable expenses can be spread evenly every month at 2016 amounts Use the information from their cash-flow statement (listed in the first column of the following annual budget and their budget assumptions to fill in the missing amounts for the first six months of Deon and May's monthly budget for 2017. Note: Be sure to fill in every blank space with a value CENGAGE MINDTAP Assignment 03 - Financial Statements, Tools, and Budgets Annual Budget Name: Deon and May Daley Cash-Flow Statement 2017 2016 Jan. Apr. INCOME Deon's salary May's salary Deon's Bonus 58,000 52,200 5,000 150 $115,350 Interest and dividends Total Income EXPENDITURES Fixed Expenses Mortgage 14,112 Deon's federal income taxes 12,600 3,750 Deon's state income taxes Deon's social security taxes 4,820 May's federal income taxes 10,440 May's state income taxes May's social security taxes Property taxes 3,132 3,993 4,300 Property insurance 1,200 Medical insurance 2.400 700 Automobile insurance and registration Savings for auto purchase Total Fixed Expenses Variable Expenses $61,477 Food 1,896 3,000 Entertainment Dini y.ccguy taps News Yahoo CENGAGE MINDTAP Assignment 03 - Financial Statements, Tools, and Budgets $61,477 Total Fixed Expenses Variable Expenses Food Entertainment Dining out Electric water and sewer 1,896 3,000 4,700 350 800 Heat 1,250 3.000 600 Cable TV Telephone Cell phone Gifts 900 2,000 600 3,700 2,530 1,500 Personal care Medical expenses Vehicle gas and maintenance Charitable contributions Vacation Total Variable Expenses Total Expenses SURPLUS (DEFICIT) $26,626 $58,303 $27,047 Deon and May have an emergency fund of $40,000. They would like to start saving for retirement, but they have not signed up for their co 401(k) plans. Neither company matches 401(k) contributions. What do you suggest for Deon and May based on their goals and the budget that they have put together? The $40,000 that the Daleys have saved for an emergency is three months of expenses. They have not, however, taken Deon and may have an emergency fund of $40,000. They would like to start saving for retirement, but they have not signed up for their companies 401(k) plans. Neither company matches 401(k) contributions what do you suggest for Deon and May based on their goals and the budget that they have put together? The $40,000 that the Daleys have saved for an emergency is three months of expenses. They have not, however, take advantage of the employer 401(k) plans that are available to them. If an employer does not match contributions, it is advantageous to contribute to a company sponsored retirement savings plan because the contributions to the plan are invested with part of their surplus in their 401(k) plans, they will save the designated amount plus another of . E TIKR ar Credit function correctly. Click here to learn more Attenti: Due to is Google Chrome, this page way 9. Preparing a budget . A cash-flow budget uses the same format as a cash-flow statement. It is prepared on a monthly basis and it reflects budgeted income and expenses. In addition to the cash-flow statement, Deon and May made a list of budget assumptions, listed for you here: Deon's income will increase by 5%, effective January 1. His bonus is generally 10% of his income in the previous year, and he receives it in January May's raise will be 3%, effective January 1. Interest and dividend income will conservatively be the same in 2017 as it was in 2016 and will be received on a monthly basis. Mortgage payments will be the same in 2017 as they were in 2016. Federal income taxes are estimated at 20%, state income taxes at 6%, and social security taxes at 7.65% of wages, including Deon's bonus. Property insurance and property taxes are paid every six months, in June and December. The amount is expected to be the same in 2017 as it was in 2016 . May will contribute $60 per week for the employee portion of their medical insurance. According to her pay schedule, April and June are five-week months. Auto insurance is paid at the end of each calendar quarter and should not be more than it was in 2016. Deon and May would like to purchase a new car in the next few years and will put $500 a month away specifically for that purpose. Deon and May don't expect the amount of variable expenses to change in 2017 except that they would like to double their charitable contributions and go on a vacation to Ireland in June. The vacation will cost $6,000. Gift purchases are made mostly around the holidays, so Deon and May are planning to pay half of the gift expense in December and half in January when the credit card bill comes in Water and sewer is billed quarterly, in January, April, July, and October. The cost of heat should be spread over six months from November to April . All other variable expenses can be spread evenly every month at 2016 amounts Use the information from their cash-flow statement (listed in the first column of the following annual budget and their budget assumptions to fill in the missing amounts for the first six months of Deon and May's monthly budget for 2017. Note: Be sure to fill in every blank space with a value CENGAGE MINDTAP Assignment 03 - Financial Statements, Tools, and Budgets Annual Budget Name: Deon and May Daley Cash-Flow Statement 2017 2016 Jan. Apr. INCOME Deon's salary May's salary Deon's Bonus 58,000 52,200 5,000 150 $115,350 Interest and dividends Total Income EXPENDITURES Fixed Expenses Mortgage 14,112 Deon's federal income taxes 12,600 3,750 Deon's state income taxes Deon's social security taxes 4,820 May's federal income taxes 10,440 May's state income taxes May's social security taxes Property taxes 3,132 3,993 4,300 Property insurance 1,200 Medical insurance 2.400 700 Automobile insurance and registration Savings for auto purchase Total Fixed Expenses Variable Expenses $61,477 Food 1,896 3,000 Entertainment Dini y.ccguy taps News Yahoo CENGAGE MINDTAP Assignment 03 - Financial Statements, Tools, and Budgets $61,477 Total Fixed Expenses Variable Expenses Food Entertainment Dining out Electric water and sewer 1,896 3,000 4,700 350 800 Heat 1,250 3.000 600 Cable TV Telephone Cell phone Gifts 900 2,000 600 3,700 2,530 1,500 Personal care Medical expenses Vehicle gas and maintenance Charitable contributions Vacation Total Variable Expenses Total Expenses SURPLUS (DEFICIT) $26,626 $58,303 $27,047 Deon and May have an emergency fund of $40,000. They would like to start saving for retirement, but they have not signed up for their co 401(k) plans. Neither company matches 401(k) contributions. What do you suggest for Deon and May based on their goals and the budget that they have put together? The $40,000 that the Daleys have saved for an emergency is three months of expenses. They have not, however, taken Deon and may have an emergency fund of $40,000. They would like to start saving for retirement, but they have not signed up for their companies 401(k) plans. Neither company matches 401(k) contributions what do you suggest for Deon and May based on their goals and the budget that they have put together? The $40,000 that the Daleys have saved for an emergency is three months of expenses. They have not, however, take advantage of the employer 401(k) plans that are available to them. If an employer does not match contributions, it is advantageous to contribute to a company sponsored retirement savings plan because the contributions to the plan are invested with part of their surplus in their 401(k) plans, they will save the designated amount plus another of . E TIKR ar Credit