Question

Preparation of cash bedget. Personal finance problem Sam and Suzy Sizeman need to prepare a cash budget for the last quarter of 2016 in order to make sure they can cover their expenures duing the period Sam and Saury have been preparing budgets for the past several years and have beon able to establish specific percentages for most of their cash outlowrs These percentages are based on their take home pay (thut monthly u normaly run 4 8% of mortly take home pay) The ilermation here E can be used to create nei lort,quater budget lor 201 a. Prepare a quartedly cash budget for Sam and Suzy covering the months October through December 2016 b. Are there individual months that incur a defici C. What is the cumulative cash surplus or deficit by the end of December 2016 Data Table a. Complete the October 2016 cash budget below (Round to the nearest dollar) Monthly take home pay Expenses Housing 4 900 Sam and Suzy Sireman Personal Badget for the Period October December 2016 297% 48% 102% 74% Food October Income 35% $447 119% 13% 18% 61% 1.519 72% 48% Take -home pay Expenses Clothing for October& November Clothing for December Property taxes (November only) Percent 297% s 48% s 102% $ Personal Care Entertainment for October &November Entertainment for December Savings niies Food Enter any number in the eat fields and then continue to the next question Excess in cash

Answer 1

A. Cash budget:-

Sam and Suzy Sizeman

Personal Budget

for the period October - December 2016

Particulars October($) November($) December($) Total($)

Income

  Take home pay 4900 4900 4900 14,700

Expenses

Housing(29.7%) 1455.3 1455.3   1455.3 4365.9

Utilities (4.8%) 235.2 235.2   235.2 705.6

Food(10.2%) 499.8 499.8   499.8 1499.4

Transportation(7.4%) 362.6 362.6 362.6 1087.8

Medical/Dental(0.4%)   19.6 19.6 19.6 58.8

Clothing 171.5(3.5%) 171.5(3.5%) 447 790

Property Taxes - 583.1(11.9%) - 583.1

Appliances(1.3%) 63.7    63.7 63.7 191.1

Personal care(1.8%)   88.2     88.2 88.2 264.6   

Entertainment 298.9(6.1%) 298.9(6.1%) 1519 2116.8

Savings(7.2%) 352.8 352.8 352.8 1058.4

Other(4.8%) 235.2 235.2 235.2 705.6

Excess in cash(4.8%) 235.2 235.2 235.2 705.6

Cash Remaining   882 298.9 (613.6) 567.3  

B. Yes. The month December has a deficit of  $613.6

C. The Cumulative cash surplus by the end of the December 2016 is $567.3