Question

Net Cash Flow. The following tables show expenses and income for various individuals,Find each person's net monthly cash flow (it may be negative or positive). Assume thatamounts shown for salaries and wages are after taxes and that 1 month = 4 weeks.

Answer 1

We have the

Incomes

Salary $36,000 /year

In order to know the salary per month, we divide the salary per year between 12

$\frac{36000}{12}=3000$

Salary $3000 / month

Pottery sales $200/ month

Total income per month

$3000+200=3200$

Expenses

House payments $800 /month

Groceries $150 / week

We need to know the groceries per month, in a month we have 4 weeks therefore

$150\times4=600$

Groceries $600 /month

Household expenses $400 month

Health insurance $250 month

Car insurance $600 twice a year

We need to know the car insurance per month, twice a year that means that we pay that every 6 months

$\frac{600}{6}=100$

Car insurance $100 /month

Savings plan $200 /month

Donations $600 year

We need to know the donation per month we have 12 months in a year

$\frac{600}{12}=50$

Donations $50 /month

Miscellaneous $800/month

Then we sum the expenses per month

$800+600+400+250+100+20+50+800=3200$

Total Income $3200

Total Expenses $3200

Net Monthly Cash Flow

$\text{Net Monthly Cash Flow= Total Income - Total expenses= 3200-3200=0}$

The Net Monthly Cash flow is 0