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

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