Final answer:
To determine if Mary Ann can save 10% of her after-tax income, we calculate the savings goal of $258.91 and deduct all expenses from her income. A budget spreadsheet would help assess whether the remaining balance meets or exceeds the savings target.
Step-by-step explanation:
To create a budget spreadsheet for Mary Ann, we need to consider her monthly after-tax income and her expenses to calculate if she can save the desired 10%. Here are the steps and calculations for constructing the budget :
- Start with her monthly after-tax income of $2,589.10.
- List her monthly expenses: rent ($790), cell phone ($75), utilities ($45), cable TV and internet ($65), groceries ($450), entertainment ($250), car payment ($350), and gasoline ($120).
- Add up all the expenses to get the total monthly expenses and subtract this amount from her after-tax income to find the balance.
- Calculate 10% of her monthly after-tax income for savings, which is $258.91.
- Create the budget spreadsheet with a section for income, expenses, and the balance to visualize her financial situation.
After calculating, we can determine whether Mary Ann's remaining income after expenses is greater than or equal to $258.91. If it is, then she can achieve her savings goal.