Trevor and Kristen Hill need to prepare a cash budget for thenext three months to make sure that they can cover theirexpenditures during the period. Trevor and Kristen havetracked their finances for the past few years using an app, andthus know what percentage of their take-home pay of $5500goes for various expenses.ExpensesHousingUtilitiesFoodTransportationMedical/dentalContributionsClothing (3% normally; $450 in Month 3)Property Taxes ($1260, Month 2 only)AppliancesPersonal CareTravel and Entertainment (6%; $1400 in Month 3)OtherSavings29.0%5.0%9.5%6.0%5.0%10.5%3.0%a.1.0%2.0%6.0%5.0%7.5%The Hills must maintain a $1500 cash balance to avoidchecking fees; however, the balance on March 31, 2021 was$1300. Their savings account balance on March 31 was$20,000.Prepare a quarterly cash budget for Trevor and Kristenfor the next three months.b. Using your calculations, show the monthly inflows andoutflows and the end-of-month balances for the Hillschecking account.c. In what months do the Hills run a deficit? A surplus?d. What is your analysis of the Hills' budget?

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

Answered: Trevor and Kristen Hill need to prepare…

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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10. Cameron is in grade 12 and works part-time in a bike shop. His monthly budget is shown. Expenses ($) transportation clothes Income ($) March 1-15 458.68 109.00 March 16-30 494.02 100.00 entertainment 125.00 college savings 200.00 car fund 175.00 motorcycle lessons 250.00 What should Cameron do to his budget, if his income remains the same for the next month? a. Increase his clothing expense by at least $6. b. Reduce his clothing expense by $2. c. Reduce his clothing expense by at least $7. d. His budget is already balanced.
Ralph has two accounts with South Trust National Bank. Over the summer, he mows lawns and deposits his earnings weekly into his savings account. Ralph also eats out every day and uses the money in his checking account to pay for his meals. Besides these two transactions, he does not deposit or withdraw funds from either of these accounts.The amount in his savings account over time is represented in the table below. He spends$50 on food each week, and after three weeks, he has $1,600 in his checking account. Ralph Saving Account Weeks Total Amount 0 2 700 6 1100 12 1700 Part A How much money was in his saving account initially (at week zero)? Show how you determine your answer. Part B Create an equation to model Ralph’s savings account and create another equation to model Ralph’s checking account. After how many weeks will he have more money in his saving account?
In early December Alice and Bob decided to open Sample Cafe with $15,000 of their own money and $20,000 borrowed from a friend. They have spent $13,000 on equipment and furniture, and they have purchased $3,100 worth of cups for cash which they expect will be used over the next three months. Having put down a $2,300 deposit for a location on Main St., they will pay the first month’s rent when they open their doors on January 1. In the balance sheet template below, fill in the appropriate values as of December 31.
Ernie Bilko has a business idea. He wants to rent an abandoned gas station for just the months of November and December. He will convert the gas station into a drive-through Christmas wrapping station. Customers will drive in, drop off their gifts, return the next day, and pick up their wrapped gifts. He needs $331,700 to rent the gas station, purchase wrapping paper, hire workers, and advertise. If he borrows this amount at 6.5 interest for those two months, what size lump sum payment will he have to make to pay off the loan? (Round your answer to the nearest cent.) $ _______
What is the amount of Laura’s monthly cash outflows if she chooses to rent the apartment by her herself? Use the rent amount for the one bedroom apartment to complete her budget?
Your friend has asked you for budgeting help. They have a combined net family income of $138,000 per year. They have no children. They live in a three-bedroom house. Their expenses are as follows: Yearly payments: Taxes: $1,200 Insurance: $3,300 Car Expenses: $1,950 Monthly payments: Utilities: $350 Phone/Internet/TV: $180 Food: $700 Clothing: $250 Office supplies: $160 Car payments: $740 Weekly payments: Mortgage: $540 Entertainment: $120 4 This year, they would like to contribute a total of $24,000 to their RRSP. Determine whether they can afford that contribution. If so, how much (if any) do they have left for savings? Include your calculations and give a word answer.
In early December Alice and Bob decided to open Sample Cafe with $16,000 of their ownmoney and $20,000 borrowed from a friend. They have spent $13,000 on equipment andfurniture, and they have purchased $3,200 worth of cups for cash which they expect will beused over the next three months. Having put down a $2,300 deposit for a location on MainSt., they will pay the first month’s rent when they open their doors on January 1.In the balance sheet template below, fill in the appropriate values as of December 31.
Sheldon is going to enroll in a flexible spending account (FSA). In order to decide how much to contribute to the FSA, he needs to estimate his out-of-pocket health care expenses for the coming year. For the past four years, his expenses have been $648, $1,024, $812, and $705. What is Sheldon's average yearly expense?

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