Question

Jamie Lee Jackson, age 24, now a busy full-time college student and part-time bakery clerk, has been trying to organize all of her priorities, including her budget. She has been wondering if she is allocating enough of her income towards savings, which includes accumulating enough money towards the $7,500 down payment she needs to begin her dream of opening a cupcake café. Jamie Lee has been making regular deposits to both her regular, as well as her emergency savings account. She would really like to down and get a clearer picture of how much she is spending on various expenses, including rent, utilities, entertainment and how he debt compares to her savings and assets. Jamie Lee's telephone is currently paid for by her father as she is on the family phone plan She realizes that she must stay on track and keep a detailed budget if she is to realize her dream of being self-employed after college graduation Use the information below to record Jamie Lee's inflows and outflows of cash for a one-month period. Each answer must have a value for the assignment to be complete. Enter "O" for any unused categories Monthly Expenses: Rent obligation $1.850 $225 Current Financial Situation Assets: Checking account Emergency fund savings account car $4,300 Utilities electricity $75 $5.200 Utilities/water

Answer 1

Cash Inflows
Salary Take home	1580
Other Income	0
Other Income	0
Total		1580
Cash Outflows
Fixed expenses
Mortgage or rent	225
Loan/credit card payment	45
Insurance	45
Other
Total Fixed expenses		315
Variable expenses
Food	115
Clothing	45
Telephone
Electricity	75
Water	35
Transportation
personal Care
Medical expenses
Recreational/entertainment	140
Gifts
Donations
Cable	120
Others	95
Total Variable expenses		625
Total Outflows		940
Surplus/deficit		640
Allocation of surplus
Emergency Fund saving		320
Financial goal saving		320
Other savings		0

It is assumed that she is saving equally for emergency funds and financial goals.