Question

• Housing 25% - 35%: percent chosen = 25% - $3,255.42 x .25= $813.86 • Food/Household 10% - 20%: percent chosen = 15% - $3,255.42 x .15= $488.31 • Savings 5% - 10%: percent chosen =10% - $3,255.42 x .10= $325.54 • Transportation 15% - 20%: percent chosen = 15% - $3,255.42 x .15= $488.31 • Debt 5% - 15%: percent chosen = 11% - $3,255.42 x .11= $358.10 • Entertainment 5% - 10%: percent chosen = 5% - $3,255.42 x .05= $162.77 • Medical/Personal Care 3% - 7%: percent chosen= 5% - $3,255.42 x .05= $162.77 • Giving 5% - 10%: percent chosen = 5% - $3,255.42 x .05= $162.77 • Clothing 3% - 5%: percent chosen = 4% - $3,255.42 x .04= $130.22 • Miscellaneous 5% - 10%: percent chosen = 5% - $3,255.42 x .05= $162.77 B. (5 points) Using your work in Part A, create a budget spreadsheet. Include a section for income, a section for expenses, and a section for balance. Insert a picture of your completed spreadsheet.

Answer 1

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 :

1. Start with her monthly after-tax income of $2,589.10.
2. 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).
3. Add up all the expenses to get the total monthly expenses and subtract this amount from her after-tax income to find the balance.
4. Calculate 10% of her monthly after-tax income for savings, which is $258.91.
5. 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.