What is cumulative cash surplus or deficit by end of month

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Reference no: EM131834974

Sam and Suzy Sizeman need to prepare a cash budget for the last quarter of 2016 in order to make sure they can cover their expenditures during the period. Sam and Suzy have been preparing budgets for the past several years and have been able to establish specific percentages for most of their cash outflows. These percentages are based on their? take-home pay? (that is., monthly utilities normally run 5.2% of monthly? take-home pay). The information here

Income

Monthly take-home pay $4,920

Expenses

Housing 30.3%

Utilities 5.2%

Food 10.5%

Transportation 7.4%

Medical/dental 0.5%

Clothing for October & November 2.7%

Clothing for December $435

Property taxes (November only) 11.4%

Appliances 1.1%

Personal Care 1.9%

Entertainment for October & November 5.6%

Entertainment for December $1,549

Savings 7.7%

Other 5.5%

Excess cash 4.6%

can be used to create their? fourth-quarter budget for 2016.

a. Prepare a quarterly cash budget for Sam and Suzy covering the months October through December 2016.

b. Are there individual months that incur a? deficit?

c. What is the cumulative cash surplus or deficit by the end of December? 2016?

Reference no: EM131834974

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