Instructions 1. Create a quarterly cash budget for Sam and Suzy that covers the months...
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Finance
Instructions
1. Create a quarterly cash budget for Sam and Suzy that covers the months of October through December 2013.
2. Are there specific months with a deficit?
3. What is the cumulative cash surplus or deficit at the end of December 2013?
Making a Cash Budget Sam and Suzy Sizeman need to make a cash budget for the last quarter of 2013, to make sure they can cover their expenses during the period. Sam and Suzy have budgeted for the past several years and have set specific percentages for most of their cash outflows. These percentages are based on your take-home pay (ie, monthly services typically represent 5% of take-home pay). Use the information in the following table to develop the budget for the fourth quarter of 2013.
Income: Monthly net wages $5,300 Expenses
House 30%
Services 5%
Food 10%
Transportation 7%
Medical/dental expenses .5%
October and November clothing 3%
December Clothing $440
Property tax (November only) 11.5%
Appliances 1%
Personal care 2%
October and November fun 6%
December Fun $1,500
Savings 7.5%
Other 5%
Excess cash 4.5%
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