Download - Preparing a Budget Sheet

Preparing a Budget Sheet pp. 149-1523-2SECTIONSECTION

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Copyright © Glencoe/McGraw-Hill MBA, Section 3-2, Slide 2 of 16

3-2

Section ObjectiveSection ObjectiveUse:

• records of past expenditures to prepare a monthly budget sheet


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living expenses (p. 149)

Routine expenses, such as food, utilities, and clothing, that vary from month to month.

fixed expenses (p. 149)

Regular expenses that do not vary from month to month, such as rent and car payment.

Key Words to KnowKey Words to Know


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annual expenses (p. 149)

Expenses which occur once a year, such as insurance premiums and real estate taxes.

Key Words to KnowKey Words to Know


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Total Monthly Monthly Monthly Share Monthly = Living + Fixed + of AnnualExpenses Expenses Expenses Expenses

FormulaFormula


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Why do you think Classified’s expenses were highest last summer?

A Rock Star’s Lyrical Leverage p. 149A Rock Star’s Lyrical Leverage p. 149


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The Millers use records of their past expenditures to complete the budget sheet shown on page 150 in your textbook.

What is the total of their monthly expenses?

Example 1Example 1


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Step: Find the total monthly expenses.

Monthly Monthly Monthly Share Living + Fixed + of AnnualExpenses Expenses Expenses

$505.00 + $978.50 + $219.29

= $1,702.79

Example 1 AnswerExample 1 Answer


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The Browns have monthly living expenses of $875.00, monthly fixed expenses of $1,025.80, and annual expenses of $4,974.00.

After calculating the Browns’ monthly share of annual expenses, find their total monthly expenses.

Example 2Example 2


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Find the monthly share of annual expenses.

Annual Expenses 12

$4,974 = $414.50 12

Example 2 Answer: Example 2 Answer: Step 1Step 1


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Add up the expenses.

Monthly Monthly Monthly Share Living + Fixed + of AnnualExpenses Expenses Expenses

$875.00 + $1,025.80 + $414.50 = $2,315.30

Example 2 Answer: Example 2 Answer: Step 2Step 2


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Find the total monthly expenses.

Living: $846

Fixed: $1,560

Annual expenses: $4,644

Practice 1Practice 1


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$2,793

Practice 1 AnswerPractice 1 Answer


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Find the total monthly expenses.

Living: $638

Fixed: $972

Annual expenses: $4,980

Practice 2Practice 2


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$2,025

Practice 2 AnswerPractice 2 Answer

Preparing a Budget Sheet3-2END OF SECTIONEND OF SECTION

Download - Preparing a Budget Sheet

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