Budget Analysis of the Terrels for the year 2003
The Income and expenditure statement of the Terrels prepared with the forecasted income and expenditure figures shows that the total gross income will be $ 52596 for the year 2003. The total expenditure for the year will be $ 46920. Thus, there will be
a net income of $ 5676 for the year 2003. As per the monthly income and expenses plan of the Terrels, it is found that during the months of February, June, July, August and October, there will be surplus income for the Terrels. However, during the months of January, March, April, May, September, November and December there will be deficit for the Terrels. The deficit will be $1792 during the month of January and in March and April it will be $ 292 per month.
In May the deficit will be $ 2212 and in September, November and December it will be $ 292 per month. The financial position of the Terrels for the year 2003 will be strong enough to pay all of their debts in time. It is estimated that there will be adequate income for them to set off the expenditure requirements. During the month of February, there will be surplus fund of $ 2108 for the Terrels. During June, July and August the surplus earnings for the Terrels will be an amount of $ 2708 per month. When taking the earnings and expenses for the entire year, there will be surplus of $ 5676. There will be adequate surplus for the financial year 2003 in normal course. In terms of surplus income, the financial position of the Terrils should be safe and secure in the year 2003.
It is expected that there will be a chance to earn additional income of $ 1500 for the year from the job opportunity to the Sherman. In case of realizing this additional income opportunity, it will result in additional surplus during the month of June for the Terrels. Thus there will be net income of $ 4208 for the month of June for the Terrels.