Income statement preparation USING FORMULAS IN EXCEL.Adam and Arin Adams have co
ID: 2578355 • Letter: I
Question
Income statement preparation USING FORMULAS IN EXCEL.Adam and Arin Adams have collected their personal income and expense information and have asked you to put together an income and expense statement for the year ended December 31, 2015. The following information is received from the Adams family
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a. Create a personal income and expense statement for the period ended December 31, 2015. It should be similar to a corporate income statement.
b. Did the Adams family have a cash surplus or cash deficit?
c. If the result is a surplus, how can the Adams family use that surplus?
a. Create a personal income and expense statement for the period ended December 31, 2015. It should be similar to a corporate income statement.
Adam's salary
$ 44 comma 800$44,800
Utilities
$ 3 comma 220$3,220
Arin's salary
30 comma 40030,400
Groceries
2 comma 2502,250
Interest received
490490
Medical
1 comma 5201,520
Dividends received
200200
Property taxes
1 comma 6611,661
Auto insurance
610610
Income tax, Social Security
13 comma 40013,400
Home insurance
720720
Clothing and accesories
2 comma 0002,000
Auto loan payment
3 comma 3103,310
Gas and auto repair
2 comma 1202,120
Mortgage payment
13 comma 80013,800
Entertainment
2 comma 0202,020
Explanation / Answer
a. Create a personal income and expense statement for the period ended December 31, 2015. It should be similar to a corporate income statement. Adam’s salary $44,800 Arin’s salary $30,400 Interest received $490 Dividends received $200 Total Income $75,890 Expenses Mortgage payments $13,800 Utility expense $3,220 Groceries $2,250 Auto loan payment $3,310 Home insurance $720 Auto insurance $610 Medical expenses $1,520 Property taxes $1,661 Income tax and social security $13,400 Clothes and accessories $2,000 Gas and auto repair $2,120 Entertainment $2,020 Total Expenses $46,631 Cash Surplus or (Deficit) $29,259 b. Did the Adams family have a cash surplus or cash deficit? Cash Surplus,since income exceeds expenses c.If the result is a surplus, how can the Adams family use that surplus? The Adam family use that surplus in investing long term or short term investments,payoff their liabilities,buy home, buy necessary things, deposit in the saving bank account.