{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

11.1 - $ 50.00 MEDICAL EXPENSES $ 25.00 ELECTRICITY $ 60.00...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
CLAIRE’S NEW CAR AND RRSP BUDGETING PROBLEM Claire graduated from Carleton University two years ago and is currently earning $55,000 a year working for a local hi-Tec firm. Claire wants to buy a new car for $22,000. Her car payments will be $350 per month, She expects to average $60.00 per month for gasoline and $500 per year for maintenance and repair expenses. Claire also wants to contribute $4,000 to a RRSP. Claire believes that his expenditures for the next 12 months will be as follows: MONTHLY EXPENSES RENT $ 1,000.00 LOAN PAYMENT $ 500.00 CABLE & INTERNET $ 135.00 BUS PASS $ 70.00 FOOD @ HOME $ 225.00 FOOD AWAY FROM HOME $ 150.00 BOOZE AWAY FROM HOME $ 200.00 CEL PHONE/TLEPHONE
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: $ 50.00 MEDICAL EXPENSES $ 25.00 ELECTRICITY $ 60.00 PERSONAL CARE $ 35.00 YEARLY EXPENSES LIFE INSURANCE' $ 600.00 APARTMENT INSURANCE $ 600.00 ENTERTAINMENT & RECREATION $ 1,8000 CLOTHING $ 3,000.00 GIFTS $ 400.00 DONATIONS $ 200.00 REQUIRED 1. Prepare a cash flow statement for Claire segmenting expenses between fixed and variable expenses. Use the following sequence: a. Calculate Fixed Expenses b. Calculate Variable Expenses c. Calculate Total Expenses d. After tax income e. Surplus Cash Flow 2. Will Claire be able to meet her objectives of buying the car and contributing $4,000 to her RRSP? 3. Do you have advice or recommendations for Claire...
View Full Document

{[ snackBarMessage ]}