Your spouse provided the following information information about your family: salaries, $65,000; mortgage payment, $7,396; food,...

Your spouse provided the following information information about your family: salaries, $65,000; mortgage payment, $7,396; food, $2,333; interest income, $457; transportation, $1,743; dividend income, $507; automobile payment, $3,626; clothes and personal, $2,759; student loan payment, $1,663; property taxes, $1,794; utilities, $3,376; insurance, $2,118; income taxes $9,333; and recreation and vacation, $2,848. Construct a personal income statement for the family and determine what is the family's disposable income?

Expert Solution

Disposable income is money that can be spent after deducting taxes. In this case, income comprises of salaries - $ 65000, interest income - $ 457 and dividend income - $507. Taxes comprise of property taxes - $1794 and income taxes - $9333

Disposable income = Income - taxes = $65000+ $457 +$ 507 - $1794-$9333 = $ 54837.

Note - The insurance amount is being taken as an insurance premium.

For Personal income statements let us classify into receivables and payables. Receivables are income received and payables are what needs to be paid.

jeff jeffy answered 2 years ago

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