Question

Hi, can you answer this question in more detail?

Subject: Hong Kong Personal Financial Planning Practice

Q5. A

Ms. X is a fresh graduate and just found a job at a bank. Her monthly salary is $15,000, with no bonus and no commission. After some calculation, she knows that she needs to save $60 per month for tax payment. She lives in Sha Tin and works in Central, so her transportation cost per working day is $31 and she spares $40 for lunch per working day. She works 22 days a month. She lives with her parents and plans to give $4,000 to them every month for housing and utilities expenses. She spends 10% of her monthly income on entertainment and 15% on clothing and cosmetics. Calculate her monthly net cash flow, please show all the steps.

Answer 1

Calculation of Monthly Net Cash inflows of Ms. X:-
Particulars	Working		Amount in $
Monthly Salary	As given	A	15,000.00
Less:-
Monthly Tax Expense	As given	B	60.00
Transportation Cost	$31 per day*22 days	682.00
Lunch Expenses	$40 per day * 22 days	880.00
Amount given to Parents for Housing and Utilities	As given	4,000.00
Entertainment Expenses	10%*!5000	1,500.00
Clothing & Cosmetics Expenses	15%*15000	2,250.00
Net Monthly Cash inflows of Ms. X		A-B	5,628.00
Thus the net Cashflows of Ms. X are $5620 per month.