Junior Cycle Business Studies Budgets: This is a Household Budget quest

Question

This is a Household Budget question.

Answer all parts of this question:

(A) On page 10 of Section A is a partially completed Budget Form for the Sheeran household for 2019. You are required to complete this form by filling in the figures for the 'Estimate Apr - Dec' column, and the 'Total for Year Jan - Dec' column.
(Please note: a page for rough work is provided on page 11 of Section A, if required.)

The following should be taken into account:

1. Margaret expects a 15% increase in salary from 1 August.
2. Enda expects to earn an extra €150 for overtime in October and November. He will get a Christmas bonus of €500 in December.
3. There will be three children in the Sheeran household, with the birth of their third child in November.
4. Car loan and insurance are payable monthly and will increase by €275 per month from 1 November with the purchase of a new car.
5. The house mortgage will increase by €35 per month from 1 June.
6. Telephone and broadband costs are estimated to be €160 per month from 1 June.
7. Light and heat costs for the twelve months (Jan - Dec 2019) are expected to be €890.
8. Car running costs are expected to increase by €100 per month from 1 November.
9. Household costs are expected to remain at the same level, except for the month of July, when they will decrease by 30%.
10. Entertainment will average at €120 per month, except in December when it will increase by 50%.
11. The Sheeran household holiday, in June, is expected to cost €2,900. The balance must be paid in May.
12. There is no further house decoration planned in 2019.

(B) Answer the following on page 12 of Section A:

(i) Identify additional income in the Sheeran household budget.
(ii) What is the expected closing cash balance for the Sheeran household at the end of March 2019?
(iii) Outline two methods of dealing with this temporary situation at the end of March 2019, if an overdraft facility is not available to the Sheeran household.

This is a Household Budget question - Junior Cycle Business Studies - Question 1 - 2018

Worked Solution & Example Answer:This is a Household Budget question - Junior Cycle Business Studies - Question 1 - 2018

Identify additional income in the Sheeran household budget.

What is the expected closing cash balance for the Sheeran household at the end of March 2019?

Outline two methods of dealing with this temporary situation at the end of March 2019, if an overdraft facility is not available to the Sheeran household.

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