Part A:1.Allison expects her monthly cash inflow after taxes to be $3000. She also has the following monthly expenses: Rent, $750; student loan payment, $200; utilities, $150; food, $300; recreation, $600; car expenses, $200; clothing, $150. What is Allison’s net cash flow for the current month?
2.Judy has cash inflows of $3,000 for the month of June. Her expenses or cash outflows were $4,000. List two (2) options for Judy to meet her financial obligations in June and indicate the effect (increase or decrease) of these options on her assets and liabilities.
Part B:Describe how credit cards affect the following.
- Your personal budget
- Your income statement
- Your balance sheet
Part C:Describe at least two (2) advantages and two (2) disadvantages of selling your home yourself instead of hiring a realtor.