Samira and Barack Osman a newly married couple in their early 30s. They are currently renting a one-bedroom apartment in the city but would like to purchase a two-bedroom condominium in the next two years. Their combined gross annual income is $140 000. Each month, they pay $900 in wedding debt and $610 for student loans. Rent is $1350 and includes utilities. Their monthly transit passes cost $200, their monthly car payment is $175, and car insurance is $220 a month. They spend $180 each week on groceries and an additional $65 for cable, internet, and telephone. Approximately $50 is spent every month on apartment insurance. They like to have about $350 per week in discretionary income for leisure and miscellaneous expenses, such as movies, books, and CDs. They would like to save $32 000 over the next two years for a down payment. NB: Consider Income tax at 30% of the gross annual income.
Samira and Barack Osman a newly married couple in their early 30s. They are currently renting a one-bedroom apartment in the city but would like to purchase a two-bedroom condominium in the next two years. Their combined gross annual income is $140 000. Each month, they pay $900 in wedding debt and $610 for student loans. Rent is $1350 and includes utilities. Their monthly transit passes cost $200, their monthly car payment is $175, and car insurance is $220 a month. They spend $180 each week on groceries and an additional $65 for cable, internet, and telephone. Approximately $50 is spent every month on apartment insurance. They like to have about $350 per week in discretionary income for leisure and miscellaneous expenses, such as movies, books, and CDs. They would like to save $32 000 over the next two years for a down payment. NB: Consider Income tax at 30% of the gross annual income.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
Organize a budget sheet based on their current expenses
Transcribed Image Text:Samira and Barack Osman a newly married couple in their early 30s. They are currently
renting a one-bedroom apartment in the city but would like to purchase a two-bedroom
condominium in the next two years.
Their combined gross annual income is $140 000.
Each month, they pay $900 in wedding debt and $610 for student loans.
Rent is $1350 and includes utilities. Their monthly transit passes cost $200, their
monthly car payment is $175, and car insurance is $220 a month. They spend $180 each
week on groceries and an additional $65 for cable, internet, and telephone.
Approximately $50 is spent every month on apartment insurance. They like to have
about $350 per week in discretionary income for leisure and miscellaneous expenses,
such as movies, books, and CDs.
They would like to save $32 000 over the next two years for a down payment.
NB: Consider Income tax at 30% of the gross annual income.
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