THINKING SECTION 14. Ella and Sam have a net income of $43 000 a year. Their expenses include bi-weekly mortgage payments of $620, $183 a month for transit passes, utility costs that average $150 a month, savings of $312 a month, $55 a month for a phone and Internet package, $120 a week for groceries, $60 a week for entertainment, and miscellaneous expenses of $400 a month. a) Convert all income and expense amounts to monthly amounts. b) Are Ella and Sam within their budget? If so, how much more could they save each month? If not, what expenses could they reduce?

THINKING SECTION 14. Ella and Sam have a net income of $43 000 a year. Their expenses include bi-weekly mortgage payments of $620, $183 a month for transit passes, utility costs that average $150 a month, savings of $312 a month, $55 a month for a phone and Internet package, $120 a week for groceries, $60 a week for entertainment, and miscellaneous expenses of $400 a month. a) Convert all income and expense amounts to monthly amounts. b) Are Ella and Sam within their budget? If so, how much more could they save each month? If not, what expenses could they reduce?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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