Finance
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Donna and Sherman Terrel are preparing a budget for 2003. Donna is a systems analyst with an airplane manufacturer, and Sherman is working on a masters degree in educational psychology. The Terrels do not have any children or other dependents. Donna estimates her salary will be about $39,996 in 2003; 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 dont expect to have any other income in 2003.
Donna and Sherman have listed their expected total expenses in 2003 as follows:
Housing (rent)
$6,600
Transportation
Food (includes dining out)
Utilities
Payroll taxes:
Donna
12,000
Sherman
Insurance:
Life – payable in May
Auto – payable in January
1,500
Leisure and entertainment:
Vacation in May
1,200
All others
1,800
Clothing
1,500
Others
$3,900