(b)(i) Construct the Turnbull family\'s cash flow statement for the calendar yea
ID: 1171273 • Letter: #
Question
(b)(i) Construct the Turnbull family's cash flow statement for the calendar year 2015 given the following information and (ii) calculate the Turnbull family's savings ratio. Value (S 37,000 Item Turnbull's salary (after tax Reimbursement for all travel expenses Interest on savings account Groceries bought Strata and council fees paid Utilities paid Car expenses Tuition, books and supplies outlays Books, magazines and periodicals expenses Clothing and other miscellaneous expenditures Cost of photographic equipment purchased with credit card Amount paid to date on photo equipment Travel expenses Purchase of a new car (cost Outstanding loan balance on car Purchase of bonds 180 4,150 9,600 960 650 3,300 80 2,800 2,200 1,600 1,950 20,500 8,900 4,900Explanation / Answer
Net Income:3700+180=37180
Investment=4900
Expenses:
Cost of car=20500
Balance=8900
Paid for car=20500-8900=11600
Childcare=3300+80=3380
Paid for Photo equipment=1600, Loan=600
House Hold expenses=1950+960+4150=7060
Strata and council fees=9600
Total Cash remaining= Net income+investment-Expense
=37180+4900-33240
=8840
Savings=8840 and Future Loans to pay=8900+600=9500
The ratio of savings to netincome=8840/37000=0.2389 or 23.89%
P.S As there is ? I haven't considered reimbursement of travel expense, else, please add 1950 back to 8840 to calculate the ratio again.
Thank you
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