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ItemCash inflowCash outflowClothes$1,300Interest received$440Dining out$510Groceries$780Salary$4,500Auto payment$346Utilities$280Mortgage$1,350Gas$203Jane's total cash inflows are$4,940Jane's total cash outflows are$4,769$171Cash flows. It is typical for Jane to plan, monitor, and assess her financial position umonth. Jane has a savings account and her bank loans money at 6% per year whilJane'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 isc. 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 savingsaccount. 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 ton an existing account. Alternatively, she could reduce debt by paying more for somobligations like her auto loan, credit cards or mortgage. In order to maintain her mosurplus 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$44,500Utilities$3,170Arin's salary30,300Groceries2,180Interest received480Medical1,510Dividends received110Property taxes1,658Auto insurance610Income tax, Social Security12,500Home insurance780Clothes and accesories1,980Auto loan payment3,290Gas and auto repair2,090Mortgage payment13,800Entertainment1,990Personal Income and Expense StatementPeriod Ended December 31, 2015IncomeAdam’s salary$44,500Arin’s salary30,300Interest received480Dividends received110Total Income$ 75,390 Personal Income and Expense Statement (Cont'd)Period Ended December 31, 2015ExpensesMortgage payments$13,800Utility expense3,170Groceries2,180Auto loan payment3,290Auto insurance610Home insurance780Medical expenses1,510Property taxes1,658Income tax and social security12,500Clothing and accessories1,980Income statement preparation. Adam and Arin Adams have collected their personal incominformation and have asked you to put together an income and expense statement for the31, 2015. The following information is received from the Adams family.a. Create a personal income and expense statement for the period ended December 31, similar to a corporate income statement.Complete the income part of the personal income and expense statement for the period eComplete the expenses part of the personal income and expense statement for the period
Gas and auto repair2,090Entertainment1,990Total Expenses$ 45,558 Cash Surplus or (Deficit)$ 29,832 Since income exceeds expenses, the Adams' have a cash surplus.1b. Did the Adams family have a cash surplus or cash deficit?