3. Frank decides he better make a budget! Use the following information to calculate his budget. Frank has net income of $45 000 a year. This table shows his expenses. Expense Amount Student loan payments $115/every 2 weeks Mortgage Insert from above Food $75/week Cell phone plan $69/month Utilities $40/every 2 weeks Car lease $305/month including maintenance) Gasoline $65 every 2 weeks on average Miscellaneous $125/every 2 weeks a) Use the data provided to design a monthly budget for Frank. Show your calculations and indicate whether each expense or income is fixed or variable. b) How much can Frank save in a 3-month period? Show your calculations. c) Is there something Frank is forgetting in his budget? What would you recommend for changes?

3. Frank decides he better make a budget! Use the following information to calculate his budget. Frank has net income of $45 000 a year. This table shows his expenses. Expense Amount Student loan payments $115/every 2 weeks Mortgage Insert from above Food $75/week Cell phone plan $69/month Utilities $40/every 2 weeks Car lease $305/month including maintenance) Gasoline $65 every 2 weeks on average Miscellaneous $125/every 2 weeks a) Use the data provided to design a monthly budget for Frank. Show your calculations and indicate whether each expense or income is fixed or variable. b) How much can Frank save in a 3-month period? Show your calculations. c) Is there something Frank is forgetting in his budget? What would you recommend for changes?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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