Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
#4
![Budgeting
Worksheet C–Create a Short-Term Budget Worksheet
Some people spend their incomes without thinking of what they are doing or whether their buying decisions make
much sense. They may realize that they must pay their rent and insurance bills, or make monthly car payments.
However, beyond these large and regular expenditures, things can get kind of “fuzzy." It is not uncommon for people
to run out of money from one paycheck to the next. Making and following a budget is an obvious answer to this
problem, but it is hard to do when you're not really aware of where your money goes.
To take control of your financial situation, you should first create a series of short-term budget worksheets. These are
documents that record all income and spending that takes place over a specific period of time, most often one month.
When bills, such as insurance, are paid only once or twice a year, you must include an appropriate share as spending in
cach worksheet.
Directions: Consider Gretchen's budget worksheet for June, and then answer the questions that follow.
Gretchen's Short-Term Budget Worksheet
Income
Spending
Date
Source
Amount
Date
Purpose
Amount
6/07/-
wages
$423.52
6/03/20
new sweater
$ 33.86
6/09/-
birthday gift
50.00
6/12/20
car insurance
48.29
6/21/-
wages
423.52
6/15/20
rent
350.00
6/23/-
babysitting job
25.00
6/23/20
credit card bill
296.04
6/30/-
savings interest
8.92
6/25/20
telephone bill
53.41
6/26/20
groceries
69.30
6/29/20
doctor's visit
50.00
Totals
$930.96
$900.90
1. How much was Gretchen able to save in June?
2. Which sources of her income may not be the same from month to month?
3. Which types of spending might not be the same from month to month?
4. Why would a series of short-term budget worksheets be needed to develop a long-term budget?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F79a7b2f3-fcdb-462e-9c97-e7f88def8d14%2F79e5b3f5-2b20-4795-885a-23684045ce3b%2F5mex15_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Budgeting
Worksheet C–Create a Short-Term Budget Worksheet
Some people spend their incomes without thinking of what they are doing or whether their buying decisions make
much sense. They may realize that they must pay their rent and insurance bills, or make monthly car payments.
However, beyond these large and regular expenditures, things can get kind of “fuzzy." It is not uncommon for people
to run out of money from one paycheck to the next. Making and following a budget is an obvious answer to this
problem, but it is hard to do when you're not really aware of where your money goes.
To take control of your financial situation, you should first create a series of short-term budget worksheets. These are
documents that record all income and spending that takes place over a specific period of time, most often one month.
When bills, such as insurance, are paid only once or twice a year, you must include an appropriate share as spending in
cach worksheet.
Directions: Consider Gretchen's budget worksheet for June, and then answer the questions that follow.
Gretchen's Short-Term Budget Worksheet
Income
Spending
Date
Source
Amount
Date
Purpose
Amount
6/07/-
wages
$423.52
6/03/20
new sweater
$ 33.86
6/09/-
birthday gift
50.00
6/12/20
car insurance
48.29
6/21/-
wages
423.52
6/15/20
rent
350.00
6/23/-
babysitting job
25.00
6/23/20
credit card bill
296.04
6/30/-
savings interest
8.92
6/25/20
telephone bill
53.41
6/26/20
groceries
69.30
6/29/20
doctor's visit
50.00
Totals
$930.96
$900.90
1. How much was Gretchen able to save in June?
2. Which sources of her income may not be the same from month to month?
3. Which types of spending might not be the same from month to month?
4. Why would a series of short-term budget worksheets be needed to develop a long-term budget?
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