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-   -   Accounting budget (https://www.askmehelpdesk.com/showthread.php?t=140704)

  • Oct 14, 2007, 07:14 PM
    dsmith76544
    Accounting budget
    I think I got it just need a little help!
    Please help!!

    Ben Fleming has just received a job offer of $35,000 salary per year plus overtime pay, which
    Will amount to 10% of his salary. Ben estimates his living costs as follows:
    Federal, state, and FICA taxes amount to.. . 35% of income
    Rent.. . $550/month
    Car payment.. . $210/month
    IRA.. . $1,500/year
    Other savings.. . 4% of net take-home pay
    Utilities.. . $90/month
    Gas and maintenance—automobile.. . $130/month
    Insurance.. . $75/month
    Food.. . $240/month
    Entertainment.. . $170/month
    Clothing.. . $80/month
    Required:
    1. Prepare a budget for the year. Assume Ben starts his job on January 1.
    2. Is Ben's offer sufficient to meet his projected expenses?
    3. Ben has always dreamed of going to Africa to photograph wildlife. The trip will cost
    $5,000. How long will it take Ben to save for the trip? (Ignore interest earnings, and assume
    That he has no savings at the present time.)
  • Oct 17, 2007, 01:47 PM
    dsmith76544
    Would someone please check this:
    Monthly Yearly
    Annual income $35,000 Tax Fed State FICA $13,475
    Over time $3,500 IRA $1,500
    Gross Pay $38,500 Rent $550 $6,600
    Car payment $210 $2,520
    Ins $75 $900
    Utilities $90 $1,080
    Gas,maintenance-auto $130 $1,560
    Food $240 2880
    Clothing $80 $960
    Entertainment $70 $840
    Total $38,500 Total $1,445 $32,315
    Expences $32,315
    $6,185.00
    Just over eight years

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