Catrina's Budget Catrina recently graduated from college with a degree in political science. She started a job that pays her $48,000 per year. Her monthly net income is $2,800. She's moving into her own one-bedroom apartment. She has a car that she makes payments on and she pays for car insurance. She also adopted a cat, so she now has to pay for cat food and vet bills. Catrina has budgeted for the following monthly expenses based on what she expects to spend: Expense Type Rent Food Clothing College Loan Entertainment/restaurants Car and insurance payment Utilities Cell Phone Savings Renters' insurance Pet care Cable/Internet Expense cost $1,060 $400 $100 $170 $150 $350 $80 $100 $100 $80 $60 $120 Using the information about Catrina's proposed monthly budget above, answer the following questions. 1. Is Catrina budget balanced? If not, what can Catrina do to balance her budget? 2. Is Catrina following the 50, 30 and 20 spending plan in terms of savings? Explain. 3. If Catrina decides to increase savings where would you suggest that she decrease her spending?

Catrina's Budget Catrina recently graduated from college with a degree in political science. She started a job that pays her $48,000 per year. Her monthly net income is $2,800. She's moving into her own one-bedroom apartment. She has a car that she makes payments on and she pays for car insurance. She also adopted a cat, so she now has to pay for cat food and vet bills. Catrina has budgeted for the following monthly expenses based on what she expects to spend: Expense Type Rent Food Clothing College Loan Entertainment/restaurants Car and insurance payment Utilities Cell Phone Savings Renters' insurance Pet care Cable/Internet Expense cost $1,060 $400 $100 $170 $150 $350 $80 $100 $100 $80 $60 $120 Using the information about Catrina's proposed monthly budget above, answer the following questions. 1. Is Catrina budget balanced? If not, what can Catrina do to balance her budget? 2. Is Catrina following the 50, 30 and 20 spending plan in terms of savings? Explain. 3. If Catrina decides to increase savings where would you suggest that she decrease her spending?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: At the beginning of the school year, Katherine Malloy decided to prepare a cash budget for the…

A: Cash budget refers to a document which is prepared to estimate cash inflows and outflows for a…

Q: how long will it take him to save up the needed funds for his store's upgrades?

A: Time value of money (TVM) refers to the method or technique which is used to measure the amount of…

Q: Tracy is preparing her budget for next year and needs your assistance. Now that she has a better…

A: Total Sales = Number of units * Selling price per unit Cash sales = 80% of total sales Credit sales…

Q: Jin Mai is in her second year at col housemates each pay one third of the utility bill, cable…

A: Total expenses refer to the sum of all gross cash expenditures plus any pending subsidiary items,…

Q: This is Ben’s budget. Use his budget to determine the answer to the following question: Calculate…

Q: For each of the following scenarios, indicate whether the individual made a correct choice or an…

A: SOLUTION- BUDGET IS A FINANCIAL DOCUMENT USED TO PROJECT FUTURE INCOME AND EXPENSES. A BUDGET CAN BE…

Q: In order to get your personal finances under control, you need to prepare a personal budget. Assume…

A: Total spendable income = Wages Earned + Interest Income - Income tax withheld. Surplus or Shortage =…

Q: Jamie Lee Jackson, age 24, now a busy full-time college student and part-time bakery clerk, has been…

A: Cash flow is the net balance of cash moving into and out of a business at a specific point of time.

Q: Diane just graduated with a psychology degree. During college, Diane accumulated $12,000 in student…

A: Based on the given information, Interest rate = 8%/4 = 2% Number of periods = 5 years x 4 quarters =…

Q: Suppose Annaliese has 5,200 as a basis for her monthly budget. If she wants to invest 20% of her…

A: Suppose Annaliese has 5,200 as a basis for her monthly budget. If she wants to invest 20% of her…

Q: Estimating Savings. Angela's monthly disposable income is $2,063. She has monthly expenses of $1,774…

A: To calculate how much Angela can expect to save in the next 12 months, we need to consider her…

Q: This scenario is an example of

A: Given case is: A fther is planning to give some extra pocket money to his 12-year-old son. He asks…

Q: Debra is a true accountant: she not only likes knowing where every dollar is going, she is obsessed…

A: The objective of the question is to prepare a cash budget for the fourth quarter of the year. This…

Q: Cindy has been working for 8 years, and she’s built up a huge emergency fund -- $45,000, which would…

A: Cindy has built up an emergency fund- $45000 , which would be 6 months of her salary. She’s hoping…

Q: At the beginning of the school year, Craig Kovar decided to prepare a cash budget for the months of…

A: Beginning cash balance = $6520 Cash receipt from part-time jobs = $810

Q: At the beginning of the school year, Priscilla Wescott decided to prepare a cash budget for the…

A: Cash budget as the name implies is the estimate of cash inflow and cash outflow from various…

Q: Ashley has a large and growing collection of animated movies. She wants to replace her old…

A: Future value is an estimate of future cash flow that may be received at a future date, discounted…

Q: Felice lives and works for two periods. In the first period, she earns 220 coconuts and in the…

A: Standard disclaimers “Since you have asked multiple question, we will solve the first question for…

Q: Ashley has a large and growing collection of animated movies. She wants to replace her old…

A: With the given values, we can determine the future value of annuity and annuity due as follows:

Q: Lois Braggs owns a small restaurant in Boston. Ms. Bragg provided her accountant with the following…

A: Amount of borrowing is the amount needed by the company to borrow from financial institution to…

Q: Peter and Cindy each had some money at first. Peter started spending $1.20 daily. After 15 days,…

A: a.Daily spending by Peter = $1.20 Daily spending by Cindy = 1 2/3 of Peter's daily spending = Cindy…

Q: Brianna is creating a budget. The expenses she pays monthly are $500 for rent, $120 for gas for her…

A: Here we will calculate monthly income and monthly expenses first , then we will calculate monthly…

Q: Benjamin Netanyahu sells fruit and vegetables from his market stall for cash. His budgeted sales for…

A: Net cash inflow is the difference between the total cash inflows and the total cash outflows of a…

Q: Trevor and Kristen Hill need to prepare a cash budget for the next three months to make sure that…

A: As per Bartleby Guidelines if Multiple Subpart Questions are asked then the Expert needs to answer…

Q: On January 1, you plan to take a trip around the world upon graduation four years from now.…

Q: Monthly Income Monthly Expenses ITEM JAMOUNT ITEM ]Column1 |AMOUNT Income Source 1 $2,000.00 Rent…

A: Income and expenses is an part and partial of a daily life of an individual. The income is earned…

Q: Monthly Income Monthly Expenses ITEM AMOUNT ITEM |Column1 AMOUNT Income Source 1 $2,000.00 Rent…

A: The monthly income tax is calculated by applying the tax rate on the monthly income of the person…

Q: Monthly Income Monthly Expenses ITEM ITEM JAMOUNT ]Column1 |AMOUNT Income Source 1 $2.000.00 Rent…

A: The Tax is always calculated on the income. which is get after deducting all expenses from the…

Q: Based on their budget, Bryce and Sylvia have determined they can afford up to $2,500 per month for…

A: Private mortgage insurance (PMI) is the insurance payable on the balance of the loan per year. At…

Q: Ashley and Duncan just created their January 2019 income and expense statement. They spent their…

A: A savings plan is a structured financial strategy that individuals or households use to…

Q: Prepare a cash budget for September, October, November, and December. Enter all amounts as positive…

A: A cash budget is a statement showing the expected cash receipts and cash payments during a given…

Q: Sarah Geronimo and Matteo Guidicelli are preparing their 2021 cash budget. Help the Guidicelli…

A: In the given question there is a couple who is preparing their Cash budget for the year 2021. A cash…

Concept explainers

Master Budget

A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.

Sales Budget and Selling

A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.

Question

6:48 PM Thu May 18
K
7
APPLICATION:
14.04b Homework
Catrina's Budget
Catrina recently graduated from college with a degree in political science. She started a job that pays her $48,000
per year. Her monthly net income is $2,800. She's moving into her own one-bedroom apartment. She has a car
that she makes payments on and she pays for car insurance. She also adopted a cat, so she now has to pay for cat
food and vet bills. Catrina has budgeted for the following monthly expenses based on what she expects to spend:
Expense Type
Rent
Dashboard
Assignment Details
19262 Economics & Personal Finance 2223-FYb-Sem2
Food
Clothing
College Loan
Entertainment/restaurants
Car and insurance payment
Utilities
Cell Phone
Savings
Renters' insurance
Pet care
Cable/Internet
Using the information about Catrina's proposed monthly budget above, answer the following
questions.
000
1. Is Catrina budget balanced? If not, what can Catrina do to balance her budget?
2. Is Catrina following the 50, 30 and 20 spending plan in terms of savings? Explain.
3. If Catrina decides to increase savings where would you suggest that she decrease her spending?
How to complete and submit this assignment
Calendar
Submit Assignment
Expense cost
21
$1,060
$400
$100
$170
$150
$350
$80
$100
$100
$80
$60
$120
To Do
Notifications
8
17% 0
Inbox

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Budget

VIEW

Step 2: Solution to Part 1.

VIEW

Step 3: Solution To Part B and Part C

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 4 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

help
Rick wishes to purchase a new car and can afford monthly payments of up to $275 per month. Finance is available and the terms are that the loan lasts for 6 years, and the annual interest rate is 8%. What is the maximum price for a car that Ryan's budget can afford?Round your answer to the nearest hundred dollars.
Jim Lawler spends 23% of his income on housing, 10% on food, 9% on clothing, 17% on transportation, 12% on education, 8% on recreation, 6% on miscellaneous, and saves the balance. If his savings amount to $220 per month, what are his monthly earnings?
Timothy Mother Ms. Parker find out her Monthly Rent is $496.00 every month but she owes $13,842.00 but she gonna got $6,000 save up in the bank how much more she post to take out to add up to that amount?
At the beginning of the school year, Katherine Malloy decided to prepare a cash budget for the months of September, October, November, and December. The budget must plan for enough cash on December 31 to pay the spring semester tuition, which is the same as the fall tuition. The following information relates to the budget: Cash balance, September 1 (from a summer job) $9,060 Purchase season football tickets in September 120 Additional entertainment for each month 310 Pay fall semester tuition in September 4,900 Pay rent at the beginning of each month 440 Pay for food each month 250 Pay apartment deposit on September 2 (to be returned December 15) 600 Part-time job earnings each month (net of taxes) 1,120 a. Prepare a cash budget for September, October, November, and December. Enter all amounts as positive values except an overall cash decrease which should be indicated with a minus sign. KATHERINE MALLOYCash BudgetFor the Four Months Ending December 31…
Estimating Savings. Julia brings home $1,900 per month after taxes. Julia's rent is $419 per month, her utilities are $127 per month, and her car payment is $276 per month. Julia is currently paying $237 per month to her orthodontist for her braces. If Julia's groceries cost $76 per week and she estimates her other expenses to be $196 per month, how much will she have left each month to put toward savings to reach her financial goals? Given Julia's expected expenses, the amount she will have left each month to put toward savings to reach her financial goals is $ (?) (round to the nearest dollar)
Sanjana's Sweet Shoppe operates on the boardwalk of a New England coastal town. The store only opens for the summer seaso the business is heavily dependent on the weather and the economy in addition to new competition. Sanjana Sweet, the owner, prepares a budget each year after reading long-term weather forecasts and estimates of summer tourism. The budget is a first ste planning whether she will need any loans and whether she needs to consider adjustments to store staffing. Based on expertise ar experience, she develops the following. Scenario Good Fair Poor Gross Margin per Customer (Price Cost of Poor Fair Good Poor Fair Good Poor Fair Good Sanjana assumes, for simplicity, that the gross margin and the estimated number of customers are independent. Thus, she has nine possible scenarios. In addition to the cost of the products sold, Sanjana estimates staffing costs to be $31,000 plus $2 for every customer in excess of 26,000. The marketing and administrative costs are estimated to be…
7. Future value of annuities There are two categories of cash flows: single cash flows, referred to as "lump sums," and annuities. Based on your understanding of annuities, answer the following questions. Which of the following statements about annuities are true? Check all that apply. O An annuity is a series of equal payments made at fixed intervals for a specified number of periods. An annuity due earns more interest than an ordinary annuity of equal time. □ Ordinary annuities make fixed payments at the beginning of each period for a certain time period. An annuity due is an annuity that makes a payment at the beginning of each period for a certain time period. Which of the following is an example of an annuity? O An investment in a certificate of deposit (CD) O A lump-sum payment made to a life insurance company that promises to make a series of equal payments later for some period of time
please help me to solve this question
I have a brother who is a very careful saver. He has been like that since he was very young. You know the sort: he would charge me a rental for reading his copy of The Beano. His wife recently told me that he had put away $10 per month from recycling drink tins for forty years at 3% compounded annually. How much does the crafty fellow have saved up? One decimal place.
This is Ben’s budget. Use his budget to determine the answer to the following question: Scenario: Suppose Ben wants to buy a house for $251,599. Calculate his 20% down payment for this home.
Boris runs a small manufacturing operation, producing and selling machine parts to European companies. At the start of April, his bank account had an overdrawn bank balance of $2,500. His bank has asked him to produce a budgeted bank balance for the end of April. Boris estimates that his customers will pay him $41,000 of what is owed while he will pay his suppliers $26,000 during the month. What is Boris's budgeted bank account balance at the end of April? $17,500 overdrawn $12,500 overdrawn $12,500 positive balance $17,500 positive balance