The expenses and income of an individual are given in table form. Find the net monthly cash flow (it could be positive or negative). Assume salaries and wages are after taxes, that 1 month = 4 weeks, and that 1 year = 12 months. Round your answer to the nearest dollar.
Income:part time job$800/month. Expenses:rent $540 month.
Income:student loan $7500/year
Expenses:Groceries $65/week
Income; scholarships $4600/year
Expenses: Tuition and fees:$3200 twice a year
Expenses:Entertainment:$160/month
To find the net monthly cash flow, we need to calculate the total income and total expenses per month.
Income:
- Part-time job: $800/month
- Student loan: $7500/year = $7500/12 months = $625/month
- Scholarships: $4600/year = $4600/12 months = $383.33/month
Total income per month = $800 + $625 + $383.33 = $1808.33
Expenses:
- Rent: $540/month
- Groceries: $65/week = $65/7 days per week * 30 days = $ 278.57/month
- Tuition and fees: $3200 twice a year = $3200 * 2 = $6400/year = $6400/12 months = $533.33/month
- Entertainment: $160/month
Total expenses per month = $540 + $278.57 + $533.33 + $160 = $1511.90
Net monthly cash flow = Total income per month - Total expenses per month
= $1808.33 - $1511.90
= $296.43
Therefore, the net monthly cash flow is approximately $296.
To find the net monthly cash flow, we need to calculate the total income and total expenses separately and then subtract the total expenses from the total income.
1. Income
- Part-time job: $800/month
- Student loan: $7500/year = $7500/12 months ≈ $625/month
- Scholarships: $4600/year = $4600/12 months ≈ $383.33/month
Total Income = $800 + $625 + $383.33
≈ $1808.33/month
2. Expenses
- Rent: $540/month
- Groceries: $65/week = $65 * 4 weeks ≈ $260/month
- Tuition and fees: $3200 twice a year = $3200 * 2 / 12 months ≈ $533.33/month
- Entertainment: $160/month
Total Expenses = $540 + $260 + $533.33 + $160
≈ $1493.33/month
Now, let's subtract the total expenses from the total income:
Net Monthly Cash Flow = Total Income - Total Expenses
= $1808.33 - $1493.33
≈ $315.00/month
Therefore, the net monthly cash flow is approximately $315/month.
To calculate the net monthly cash flow, follow these steps:
1. Convert all income and expenses to a monthly basis to make them comparable.
Income:
- Part-time job: $800/month.
- Student loan: $7500/year = $7500 / 12 months = $625/month.
- Scholarships: $4600/year = $4600 / 12 months = $383.33/month.
Expenses:
- Rent: $540/month.
- Groceries: $65/week = $65 * 4 weeks = $260/month.
- Tuition and fees: $3200 twice a year = $3200 * 2 = $6400/year = $6400 / 12 months = $533.33/month.
- Entertainment: $160/month.
2. Add up all the income and expenses.
Total Income:
= Part-time job + Student loan + Scholarships
= $800/month + $625/month + $383.33/month
Total Expenses:
= Rent + Groceries + Tuition and fees + Entertainment
= $540/month + $260/month + $533.33/month + $160/month.
3. Calculate the net monthly cash flow.
Net Monthly Cash Flow:
= Total Income - Total Expenses.
Substitute the calculated values to find the net monthly cash flow. Round your answer to the nearest dollar.
Note: Since there is no information regarding other income or expenses, we assume these are the only ones considered.
Let's calculate the values:
Total Income:
= $800/month + $625/month + $383.33/month
= $1808.33/month
Total Expenses:
= $540/month + $260/month + $533.33/month + $160/month
= $1493.33/month
Net Monthly Cash Flow:
= Total Income - Total Expenses
= $1808.33/month - $1493.33/month
≈ $315
Therefore, the net monthly cash flow is approximately $315.