projectmgt325.xlsx - Cash flows It is typical for Jane to...

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Item Cash inflow Cash outflow Clothes $1,300 Interest received $440 Dining out $510 Groceries $780 Salary $4,500 Auto payment $346 Utilities $280 Mortgage $1,350 Gas $203 Jane's total cash inflows are $4,940 Jane's total cash outflows are $4,769 $171 Cash flows. It is typical for Jane to plan, monitor, and assess her financial position u month. Jane has a savings account and her bank loans money at 6% per year whil Jane's cash flows during August were as follows: a. Determine Jane's total cash inflows and cash outflows. b. Jane's net cash flow for the month of August is c. If there is a shortage, what are a few options open to Jane? Jane can borrow money from her bank or withdraw money from an existing savings account. Another alternative is to cut down on any unnecessary expenses. d. If there is a surplus, what would be a prudent strategy for her to follow? Jane can use her monthly surplus to open a savings/investing account or increase t on an existing account. Alternatively, she could reduce debt by paying more for som obligations like her auto loan, credit cards or mortgage. In order to maintain her mo surplus she should maintain her current level of expenses.
using cash flows over a given period, typically a le it offers short-term investment rates of 5%. s/investing the balance me onthly
Adam's salary $44,500 Utilities $3,170 Arin's salary 30,300 Groceries 2,180 Interest received 480 Medical 1,510 Dividends received 110 Property taxes 1,658 Auto insurance 610 Income tax, Social Security 12,500 Home insurance 780 Clothes and accesories 1,980 Auto loan payment 3,290 Gas and auto repair 2,090 Mortgage payment 13,800 Entertainment 1,990 Personal Income and Expense Statement Period Ended December 31, 2015 Income Adam’s salary $ 44,500 Arin’s salary 30,300 Interest received 480 Dividends received 110 Total Income $ 75,390 Personal Income and Expense Statement (Cont'd) Period Ended December 31, 2015 Expenses Mortgage payments $ 13,800 Utility expense 3,170 Groceries 2,180 Auto loan payment 3,290 Auto insurance 610 Home insurance 780 Medical expenses 1,510 Property taxes 1,658 Income tax and social security 12,500 Clothing and accessories 1,980 Income statement preparation. Adam and Arin Adams have collected their personal incom information and have asked you to put together an income and expense statement for the 31, 2015. The following information is received from the Adams family. a. Create a personal income and expense statement for the period ended December 31, similar to a corporate income statement. Complete the income part of the personal income and expense statement for the period e Complete the expenses part of the personal income and expense statement for the period
Gas and auto repair 2,090 Entertainment 1,990 Total Expenses $ 45,558 Cash Surplus or (Deficit) $ 29,832 Since income exceeds expenses, the Adams' have a cash surplus. 1 b. Did the Adams family have a cash surplus or cash deficit?

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