[smeredith]

Donna and Sherman Terrel are preparing a budget for 2010. Donna is a systems analyst with an airplane manufacturer, and Sherman is working on a master's degree in educational psychology. The Terrels do not have any children or other dependents. Donna estimates her salary will be about $45,600 in 2010; Sherman expects to work only during the summer months, doing painting and remodeling work for a building contractor. He anticipates an income from those activities of $3000 a month in June, July, and August. Sherman does have a scholarship that pays his tuition and also provides $3,600 a year of which $2400 is payable in February and $1200 is payable in October. The Terrels don't expect to have any other income in 2010.

Donna and Sherman have listed their expected total expenses in 2010 as follows:

Housing (rent)
$8,640
Transportation
6,000
Food (includes dining out)
8,100
Utilities
3,000
Payroll taxes:

Donna


13,200

Sherman


1,500
Insurance:

Life - payable in May


720

Auto - payable in January


1,800
Leisure and entertainment:

Vacation in May


1,800
Clothing
1,800
Others
$3,900
Total Expenses

$50,460

The Terrels will begin 2010 with about $1,000 in liquid assets, and they prefer not to draw this balance below $600 at any time during the year.

1. Prepare a monthly income and expense plan for the Terrels in 2010.
2. On the basis of the plan you have just prepared, discuss the Terrels expected financial situation in 2010. Explain if you foresee any difficulties.
3. During the quarter break in April, Sherman's employer landed a major remodeling project and asked for Sherman's help. Sherman agreed, and he expects to earn $1,500 from the job before taxes but probably won't receive a check until early June. Discuss how this unexpected event might affect the Terrels' activities and their budget for the balance of 2010. It is not necessary to prepare a revised monthly income and expense plan but do refer to specific accounts and amounts (make appropriate assumptions) in your discussion.

[Purdue2010]

You can do this a number of different ways. I would suggest to start with the amount of money that you have on hand and the expenses that you will have to deal with in the month of Jan. Donna will be the only one making money until June, so you will want to figure out how much her monthly take home pay is. You will have to subtract her payroll taxes from her entire amount and then divide it by 12. Don't forget about the $1000 that they have saved. From that you will want to figure out their monthly expenses. Don't forget that they have auto insurance that is due in January. So you will want to add that to the first month's total expenses. After you do that just subtract monthly expenses from Donna's first month's pay and you will have your Jan. budget. Remember you have a stipulation, their liquid assets cannot go below $600, and from figuring out Jan. I am sure that the Terrells will be fine that month.

[47flower]

Prepare a income and expense statement for Donna and Sherman Terrel

[47flower]

Do a budget for Donna and Sherman Terrel

[47flower]

Show a budget for donna and sherman Terrel

[47flower]

How do you prepare a budget

[morgaine300]

First, please start your own thread for your questions. Even when it's the same problem, it's confusing (not to mention a waste of time) reading through everything that came before your posts.

You also need to read the guidelines for posting homework that are in big red print at the top of this forum. We do not just do your work for you. You're asking a lot of questions for someone to work out for you when we don't even see any attempts on your part to even do it for yourself first.

You just keep tagging onto everyone else's threads and then just posting over and over again, sometimes not even related to the topic on that thread.

Start your own thread for your question. Start a new post for each separate problem that you have. Post whatever work you've attempted and we can check it and guide you further. Ask specific questions about what you don't understand. (Not vague questions like "how do you prepare a budget") Don't keep posting the same thing three million times. People are on here voluntarily around their real lives - be patient until someone can come answer you instead of just repeating the same thing over and over. You're posting the same thing like 2-3 minutes apart.

While you're at it, read the previous posts, and pay attention when someone does actually give you an answer, cause it appears that you don't. You will more easily get help if you stop making things difficult for us and looking impatient.