Income and Expense Statement | $ | |
1 | Income | |
Salaries (Jim+ Beth) | 65,000 | |
Interests on Savings account and Bonds | 180 | |
Total Income | 65,180 | |
2 | Expense | |
Food | 5,804 | |
Personal Care | 1,256 | |
Home mortgage Payment | 9,600 | |
House Insurance | 285 | |
Property tax | 4,056 | |
Electricity & Water | 458 | |
Telephone | 863 | |
Cable & Internet | 728 | |
Gas and Auto maintenance | 650 | |
Books and Magazine | 280 | |
Clothing and other miscellaneous | 2,700 | |
Medical | 250 | |
Auto loan payment | 4,980 | |
Furniture payment | 200 | |
Student Loan payment | 2,530 | |
Federal Taxes | 9,100 | |
State Income taxes | 3,250 | |
Social Security and Medicare | 4,973 | |
Health and disability insurance | 2,592 | |
Auto Insurance | 850 | |
Total Expenses | 55,405 | |
Surplus | 9,775 |
Savings of Jim and Beth are $ 9775 -3760 = $ 6015.
a ) Savings Ratio = Savings / Total Income = 6015 / 65180 = 9.23%.
They are able to save 9.23% of their annual income, which is a very healthy sign of their financial condition.
b) Debt service Ratio = Payments made pertaining to debt / earnings.
payments pertaining to student loan + mortgage + furniture+ auto loan = 4980+200+2530+9600 = 17,130\-
Debt service Ratio = 17130 / 65180 = 26.6%
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TNormal No Spac... Heading1 Heading 2 Title S Subtitle Subtle Em... . Emphasis Font Paragraph Styles 3. 1) Use the items below to prepare a personal balance sheet for lim Gordon (use the worksheet Topic3 BalanceSheet posted on D21]. Hint: not all information is relevant Auto repair paid for last month: $650 Monthly take-home salary: $3,950 Cash in checking account: $450 Savings account balance: $690 Utility bills outstanding (includes telephone, gas, electricity): S100 Balance of educational loan: $5,200 Balance of...