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FIN110-0903B-15 Personal Finance Concepts Assignment Name: Unit 1 Individual Project 2 Deliverable Length: 2-3 pages Details: Donna and Sherman...

FIN110-0903B-15 Personal Finance Concepts
Assignment Name:
Unit 1 Individual Project 2
Deliverable Length:
2-3 pages
Details:

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



2,100

Clothing

1,800

Others

$3,900


Total Expenses


$51,660


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.
Prepare a monthly income and expense plan for the Terrels in 2010.
On the basis of the plan you have just prepared, discuss the Terrels expected financial situation in 2010. Explain if you foresee any difficulties.
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.
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Please submit your assignment.

Points Possible:
90
Date Due:
Sunday, may 2, 2010
Objective:

Develop personal financial goals based on an understanding of the process for making personal financial decisions.
Design a personal budget.

Submitted Files:
Submit Assignment
Score:
N/A
Instructor Comments:
No comments have been made


 

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