3. The Garners ' take-home pay is over $4,500 a month. Yet, after all expenses are paid, there is only a $220 surplus each month. Based on the information presented in this case, what expenses, if any, seem out of line and could be reduced to increase the surplus at the end of each month?
Student Answer: The Garners’ recreation and entertainment cash outflow seems to be excessive. They are paying almost as much in entertainment that they are paying towards their home mortgage. I would suggest they cut those costs dramatically to $200. I would also suggest they decrease their clothing allowance to $100. They should also eliminate the gifts and donations in their budget because they are paying minimum payments on credit cards, and eliminating
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What are the major reasons investors purchase mutual funds as reported to the Lawrences by the Financial Advisor?
Student Answer: Professional management and diversification are the major reasons investors purchase mutual funds, as well as they are easy to invest in for beginning investors or those who lack large amount of money as required by other types of investments. Investment companies are employed with experienced and profession fund managers who research and devote a lot of time to finding the perfect securities for their investment portfolios. The diversification allows for gains, even in a loss, because one investment in a mutual fund can offset the loss of another by it’s gains. Basically, your investments are scattered around and offer somewhat of a safety net for your
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The disadvantages for a limited partner are no different. Let’s begin with illiquidity, because it could take months to sell the limited partnership shares. Second, while real estate tends to maintain or increase in value, there are also times of declining property values as well. Third disadvantage is management problems. The decisions made by management can affect the investors who are blissfully unaware of the happenings because they are not involved; meaning an limited partner, while not involved in the paperwork, still needs to be aware of the actions taking place. Another disadvantage is lack of tax shelter, while the limited partnership provides a tax advantage with regards to business tax, the income still is included as personal income. The Tax Reform Act of 1986 limits the ability to use losses on real estate investments from income dividends and interest, basically dissolving the tax shelter aspect of real
The family type from the monthly budget exercise that will be reflected in this paper consists of two parents with two children, a six year old daughter and a nine year old son, living in Montreal with a monthly income of $9456—an income source that is twice the median income.
Throughout the entire article, “Blue Collar Brilliance” the author Mike Rose is trying to show the real fact of Blue Collar jobs by describing his mother work as a waitress and his uncle as a factory worker who made his way up to manager. By giving evidence, he is also trying to open the readers eye that Blue Collar workers are in a same intelligence skill as other high-level workers though they do not have four years degrees. The author, Mike Rose, passed his childhood by watching his mom as waiting on booths and table with skillfully to assemble the skill to do work efficiently. He also watched out all other workers and interested by their adaption to coexist with each other. He got the chance as a first person to attend college in his family,
Kellie has been married for 17 years and has since lived in the same suburban neighborhood with her husband and only daughter. She attended a local college for a business management degree and her home is a dual income household with both her and her husband’s income equaling to approximately $120,000. Though her husband and she both save money for retirement, a large portion of their money goes into home improvement expenses.
While creating my hypothetical family I did not want to have the average American family that consist of a mother, father and multiple children. Instead, I decided to have a single mother, 33 years of age and her daughter 15 years of age. The main income source for the family comes from the mother who makes an average of one thousand four hundred and fifty dollars a month. The last source of income is from child support of the daughter which is one hundred and fifty three dollars. The two bedroom apartment the family lives in is five hundred and forty dollars, the utilities bill is one hundred and nineteen dollar and the monthly car payment and insurance is three hundred and seventy dollars. The grand total of expenses is one thousand one hundred and twenty nine dollars which only leaves four hundred and seventy four dollars for emergencies or situations that may arise.
Mike Rose’s article “Blue-Collar Brilliance” talks about people judging other people’s intelligence based on their jobs. Mike Rose explains in his article that people with blue collar jobs are just as intelligent as people with white collar jobs because they both use critical thinking and multi task while they are working. The standard of their jobs might be different because of their different ways of learning. People who are considered professionals or white collared individuals learn by studying or reading reports where blue collared individuals learn by performing a task. They learn faster ways to perform the task after they have done it multiple times. I believe that Rose’s thinking is very effective as it tells us that we should not judge
This day I had Miss Orbach work on her September budget. Last month she detoured from the budget, because she had some unforeseen expenses with her car and phone. Without any money saved, she took money from other areas of her budget.
After analyzing our most recent annual report from 2012. We noticed that our operational cost is approximately $20,000 over our revenue. Looking at our data from previous years, the $20,000 over-budget has occurred in the past. In 2010, Partners in Health had approximately $90,000 in unused funds which carry over at the end of ...
After completing this exercise and reviewing the accounts such as Mortgage Payment, Insurance, and Income taxes, I now see that those accounts are the control ones in as which the accounts that I need to monitor is the variable expenses such as utilities, food and vacations. This exercise is where I had to perform a vertical analysis. A vertical analysis is a system operation where a single variable of a financial statement is constant and how the other variables relate as a percentage of the single variable. In the vertical analysis the formula that’s used is percentage of base = the amount of individual item/amount of base x 100. By using this technique, I came up with the accounts that are controlled are Mortgage Payment, Insurance, and
William Sharpe, Gordon J. Alexander, Jeffrey W Bailey. Investments. Prentice Hall; 6 edition, October 20, 1998
The second issue deals with the shipping supplier. The company 's original majority shipping supplier increased its rates by 10%. Now the company must decide if it will change suppliers or purchase its own company trucks in order to achieve the target budgeted net income of
Based on the symphony forecast the surplus goes down from $116,308 in 2000-2001 to a forecasted $2,042 in 2001-2002. Even though they are a non- profit organization they should avoid deficits and negative trends.
Hensel, C. R., Ezra, D., & Ilkiw, J. H. (1991). The Importance of the Asset Allocation Decision.
(iii) Suppose that Sarah buys the building. Now how much will the business have toearn in order to break even in economic terms?
Most people are looking for alternate ways to make money. Stock market represents an ideal place in this regard, and allows people to increase their portfolio over time. Most people who do not have much time prefer to use consulted investing, in which they simply select a fund that is operating in the stocks. On the other hand, some people like to enter the market and perform individual investing.
...ine according to that requirements. The children are able to get their school fee waiver for free because they fit into the low income family’s requirement. So, after calculating all of the prices the total was $1,718.94 which mean it has an extra bill of $281.06. The family decides to save the money for either future emergencies, for school activities, or save it for next month. So in conclusion, how it felt to manage Genevieve’s monthly finances was a stressful process at first because I did not know where to get started. However, as I found more resources and information, the process became less difficult. I really enjoyed this project because I did not realize the average cost that people need to pay in America to provide for their family. At the end of the project, I am a lot more knowledge about saving money and how people have to survive on a low income bill.