Gross Profit = Gross Revenue – Cost of Goods Sold = ($7999.99-$4000) = $3999.99 Net Profit = Gross Profit – Overhead Expenses = ($3999.99-$2000) = $1999.99 Question 20: Step Description Start keeping records and decide what is important Write down any money coming in and going out of my pocket and figure out where I want to be financially in the future Identify my income and expenses I already know my income. List all my expenses under specific categories Record my expenses Put down figures of previous expenses from past months and use them as the starting position. Create monthly spending targets Create targets for each expense category so as to be able to monitor my expenses Prepare a monthly budget form Have my income at the top and start listing my expenses all the way down in a column with the targets listed in the next column Balance the budget Fill in the actual column and ensure all the expenses are recorded and the left over money is close to what was estimated Analyze the budget Observe the differences between actual and estimates and fix overspending. Use the actual for this month as estimates for the next month. Gross Income from all sources Salary: $2000 Expense Categories Monthly Actual Monthly expenditures Emergency Fund $70 $70 Savings 100 100 Investment 250 250 Rent 526.32 526.32 Electricity 40 40 Water 15 15
Phone 25 25 Internet 20 20 Food 180 200 Car fuel 60 60 Entertainment 200 16 Miscellaneous 30 50 Total Expenditures $1316.32 $1316.32
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- Winter '14
- Credit card, Cheque, Savings account, relative growth, relative yield, CCM RibCor 50K