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Develop a budget for the fictitious Brown family and Create a chart of the family budget Mr....

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Accounting

Develop a budget for the fictitious Brown family and Create achart of the family budget

Mr. Brown is a city worker earning $16.54 per hour for a 40 hourweek, 52 weeks per year. He also earns overtime at the standardovertime rate. This year he worked 500 hours overtime. He alsoearns a yearly bonus of $2000 for his satisfactory performanceevaluation. What as his total combined income?

Mrs. Brown is a social worker with a salary of $26000 per year.She also works 10 hours per week part-time on weekends at a retailstore in the mall an hourly rate of $7.50 and a commission of 10%of sales. Her yearly sales were $25,000. What is her totalcombined income?

Joe, their teenage son, works 20 hours per week part-timeearning $6.50 per hour. Joe has a responsibility to pay for his ownstudent class dues of $10 per semester, his own entertainment, andhis own clothes and personal items. Create a projectedbudget for Joe that includes a detailed list of possibleexpenditures.

Sandy, their pre-teen daughter, is too young to work, butreceives and allowance of $10 per week for completing her chores athome. Create a typical budget for a pre-teen using her allowance asincome.

Their house mortgage payment is $992 monthly.

Maintenance for the home averages $200 monthly.

The family lives in an area with mass transportationavailable.

Family medical insurance is available through Mr. Brown'semployer for $150 per month. There are routine co-payments for eachvisit to the doctor. The Brown family was fortunate that no familymember was ill, but each member of the family had a health check-upwith a co-pay of $35.00 for each visit. Mr. Brown has a monthlyprescription with a co-pay of $15.00.

The family's income tax rate is 25%.

Mrs. Brown's hourly rate (her part-time work) is put intosavings, which earns 10 % interest compounded annually. How muchwill be in the account at the end of one year?

The family owes $5000 on credit card accounts with an annualinterest rate of 12%, which is 1% monthly. The required minimummonthly payment is $75.00. How long will it take to repay thebalance if the minimum amount is paid? How much must they pay eachmonth to pay off the balance in 5 years?

***Hint: Locate a credit card calculator onlineto configure this amount. Provide the link to the calculator thatyou used.

Mr. and Mrs. Brown need to save 5% of their net income forretirement. Include this in your chart.

Identify fixed and variable expenses for the Brown family.

Answer & Explanation Solved by verified expert
3.7 Ratings (529 Votes)
Family Budget of Fictitious Brown Family Amount in Total combined income of Mr Brown 4467320 1654x40x52 1654x500 2000 Total combined income of Mrs Brown 3240000 26000 75x10x52 25000x10 Projected Budet for Joe Earning of Joe 676000 Expenses of Joe Student class dues assuming 4 semesters 4000 Entertainment assuming 50 spent per week 260000 Clothes assumed 100000 Personal Items assumed 100000 464000 Yearly saving by Joe 212000 Typical Budet for Sandy Allowance received by Sandy 52000 Expenses done by Sandy assuming 8 spent per week 41600 Yearly saving by Sandy 10400 Total Yearly Income of Brown Family 8383320 4467320324006760 Yearly Expenditure of Brown Family House mortgage payment 1190400 Home maintenance 240000 Transportation Expenses assumed 100 per person per week for 2 people 1040000 Family Medical Insurance 180000 Expenses on routine health checkups for a fmaily of four 240000 Expenses incurred by Joe 464000 Expenses incurred by Sandy 41600 Personal and Entertainment expenses of Mr Brown 520000 assuming 100 spent per week Personal and Entertainment expenses of Mrs Brown 650000 assuming 125 spent per week Annual expenses of Mr Brown clothes etc 300000 Annual expenses of Mrs Brown clothes etc 400000 Repayment of Credit Card Dues 90000 Income Tax 2095830 Saving for retirement 385366 7837196 Surplus Deficit 546124 Fixed Expenses for Brown Family House mortgage payment 1190400 Family Medical Insurance 180000 Repayment of Credit Card Dues 90000 1460400 Variable Expenses for Brown Family Home maintenance 240000 Transportation Expenses 1040000 Expenses on routine health checkups for a fmaily of four 240000 Expenses incurred by Joe 464000 Expenses incurred by Sandy 41600 Personal and Entertainment expenses of Mr Brown 520000 Personal and Entertainment expenses of Mrs Brown 650000 Annual expenses of    See Answer
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Develop a budget for the fictitious Brown family and Create achart of the family budgetMr. Brown is a city worker earning $16.54 per hour for a 40 hourweek, 52 weeks per year. He also earns overtime at the standardovertime rate. This year he worked 500 hours overtime. He alsoearns a yearly bonus of $2000 for his satisfactory performanceevaluation. What as his total combined income?Mrs. Brown is a social worker with a salary of $26000 per year.She also works 10 hours per week part-time on weekends at a retailstore in the mall an hourly rate of $7.50 and a commission of 10%of sales. Her yearly sales were $25,000. What is her totalcombined income?Joe, their teenage son, works 20 hours per week part-timeearning $6.50 per hour. Joe has a responsibility to pay for his ownstudent class dues of $10 per semester, his own entertainment, andhis own clothes and personal items. Create a projectedbudget for Joe that includes a detailed list of possibleexpenditures.Sandy, their pre-teen daughter, is too young to work, butreceives and allowance of $10 per week for completing her chores athome. Create a typical budget for a pre-teen using her allowance asincome.Their house mortgage payment is $992 monthly.Maintenance for the home averages $200 monthly.The family lives in an area with mass transportationavailable.Family medical insurance is available through Mr. Brown'semployer for $150 per month. There are routine co-payments for eachvisit to the doctor. The Brown family was fortunate that no familymember was ill, but each member of the family had a health check-upwith a co-pay of $35.00 for each visit. Mr. Brown has a monthlyprescription with a co-pay of $15.00.The family's income tax rate is 25%.Mrs. Brown's hourly rate (her part-time work) is put intosavings, which earns 10 % interest compounded annually. How muchwill be in the account at the end of one year?The family owes $5000 on credit card accounts with an annualinterest rate of 12%, which is 1% monthly. The required minimummonthly payment is $75.00. How long will it take to repay thebalance if the minimum amount is paid? How much must they pay eachmonth to pay off the balance in 5 years?***Hint: Locate a credit card calculator onlineto configure this amount. Provide the link to the calculator thatyou used.Mr. and Mrs. Brown need to save 5% of their net income forretirement. Include this in your chart.Identify fixed and variable expenses for the Brown family.

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