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1. Construct a personal income statement (cash flow statement) for the Smith fam

ID: 2728836 • Letter: 1

Question

1. Construct a personal income statement (cash flow statement) for the Smith family using the following information: salaries, $42,000; mortgage payment, $7,980; food, $2,400; interest income, $150; transportation, $1,200; dividend income, $190; automobile payment, $3,060; clothes and personal, $2,000; student loan payment, $1,700; property taxes, $1,100; utilities, $3,000; insurance, $2,100; income taxes $9,700; and recreation and vacation, $2,000. What is the family's disposable income?

Smith Family Personal Income Statement (Cash Flow Statement)(No time frame in problem)

Income

TOTAL INCOME $

Fixed Expenses

TOTAL FIXED EXPENSES $

Variable Expenses

TOTAL VARIABLE EXPENSES $

TOTAL EXPENSES $

(Cash Balance at the end of the year) $

Explanation / Answer

Personal income and disposal statement (cash flow statement) for the Smith family:

INCOME: Salary $42000 Dividend $190 Interest $150 Total Income $42340 FIXED EXPENSES: Mortgage Payment 7980 Student Loan Payment 1700 Property Tax 1100 Insurance 2100 Total Fixed Expenses -$12880 VARIABLE EXPENSES: Food 2400 Transportation 1200 Automobile payment 3060 Clothes & Personal 2000 Utilities 3000 Recreation and Vocation 2000 Income Taxes 9700 Total Variable Expenses -$23360 Cash Balance at the end of the year= $6100