magine you are a family of four. Mark and Alice are the parents, Sarah is 9 years old and in the 4th grade, and Bryan is 3. Mark works full-time as a warehouse worker and makes $12/hour ($2,080 gross/month). Alice works part-time in the school cafeteria where Sarah goes to school. Alice makes $10/hour ($866 gross/month). Neither of your jobs are located on a bus line or in walking distance from your home. Your family’s combined total income after taxes each month is $2,550, which is about $30,600 per year. The poverty level in Minnesota for a family of four is $26,200, which means your family makes too much to qualify for public assistance. Your challenge is to make a monthly budget with limited income to meet your family’s regular expenses like housing, transportation, child care and household/food needs — and not to run out of money. Questions: 1.What size apartment can we afford? 2.Is the location of our apartment safe? 3.Will family members share a room with a sibling, sleep on a couch or have their own room? 4.Are there restrictions on how many people can live in an apartment? 5.Do we own a pet? If so, will the apartment let us keep that pet? 6.Are we able to have a car or do we ride the bus? 7.If we are able to own a car, will we be able to afford unexpected repairs? 8.If we need to depend on public transportation, how far are we from a bus line, and how much time does it add to get us to work or school? 9.What if a parent gets sick and can’t work, or loses their job?

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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Imagine you are a family of four. Mark and Alice are the parents, Sarah is 9 years old and in the 4th grade, and Bryan is 3. Mark works full-time as a warehouse worker and makes $12/hour ($2,080 gross/month). Alice works part-time in the school cafeteria where Sarah goes to school. Alice makes $10/hour ($866 gross/month). Neither of your jobs are located on a bus line or in walking distance from your home. Your family’s combined total income after taxes each month is $2,550, which is about $30,600 per year. The poverty level in Minnesota for a family of four is $26,200, which means your family makes too much to qualify for public assistance. Your challenge is to make a monthly budget with limited income to meet your family’s regular expenses like housing, transportation, child care and household/food needs — and not to run out of money. Questions: 1.What size apartment can we afford? 2.Is the location of our apartment safe? 3.Will family members share a room with a sibling, sleep on a couch or have their own room? 4.Are there restrictions on how many people can live in an apartment? 5.Do we own a pet? If so, will the apartment let us keep that pet? 6.Are we able to have a car or do we ride the bus? 7.If we are able to own a car, will we be able to afford unexpected repairs? 8.If we need to depend on public transportation, how far are we from a bus line, and how much time does it add to get us to work or school? 9.What if a parent gets sick and can’t work, or loses their job?

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