PART A
.pdf
keyboard_arrow_up
School
The University of Western Australia *
*We aren’t endorsed by this school
Course
1109
Subject
Finance
Date
Apr 26, 2024
Type
Pages
3
Uploaded by ProfessorTree14015
Student no. 23319193 FINA1109 –
Managing Your Personal Finances Assignment PART A –
Assessing Financial Vulnerability 1.
Before tax income: $62,750 First $18,200 –
Nil Next $26,800 taxed 19% = $5092 Next $17,750 taxed 32.5% = 5768.75 Plus 2% Medicare Levy on $62,750 = 1255 5092 + 5768.75 + 1255 = $12115.75 Average tax rate = 12,115.75/62,750 =19.3% Effective Marginal Tax Rate = Every extra dollar she pays 32.5% + 2% = 34.5% tax After tax income = $62,750 –
$12,115.75 = $50,634.25 2.
One way Beth may be able to increase her after tax income is through investing in shares of EFTs. Qualified dividends, together with long-term realized capital gains on stocks or from ETFs, are considered as “preferred income”
and are taxed at a lower rate than ordinary income (Golden, 2019). Beth can only afford to invest small amounts, however if she does this regularly and starts early, she may be able to increase her savings. Investments do come with some degree of risk, so Beth should only invest what she can afford to lose. 3.
Monthly Liabilities = 800 + 400 + 200 + 60 = $1460 Cash Savings =$3500 Basic Liquidity Ratio
= $3500/$1460 = 2.4 Savings Ratio
= $3500/48,000 x 100 = 7.29 Beth can roughly cover her expenses for two and a half months without income, this means her ability to maintain her current standard of living is extremely vulnerable if she were to lose her income for four months. If Beth was unable to meet her spending commitments, late payments may incur a late fee and/or show on her credit report, affecting Beth’s credit score. For example, if she was late paying her rent by over 60 days, this would show on Beth’s credit report. Late payments on your credit report can be damaging to your credit reputation, as it can stay on your credit file for up to 5 years, making you less attractive to lenders if it remains on your file.
Student no. 23319193 (CreditSavvy, 2018)
. Failure to repay a car loan will result in the seizure of the vehicle. The inability to repay loans and day-to-day financial commitments will result in the lender auctioning off the property after the legal process has been completed, and it will likely result in a damaged reputation. Beth also has a low savings ratio of 7.29. A low savings ratio is not uncommon for young people who have just gotten into the workforce as they have not had time to accumulate a lot of savings. 4.
Income protection through superannuation does not cover loss of income due to reduced hours or job loss, Beth’s income protection insurance will provide cover if she becomes temporarily disabled through illness or injury and is unable to work. Superannuation income protection can pay 75% of your income if illness or injury prevents you from working. (Daniel Herborn, 2020)This greatly reduces her financial vulnerability to loss of income, as without income protection she would not be able to cover her expenses for very long. 5.
Debt diversification across time refers to “the tendency of consumers to hold and deposit income dollars in a low-interest (taxable) bank account rather than using the funds to reduce outstanding debt balances immediately, in which the interest charge accumulates at higher (“non
-tax-
deductible”) rates.” (Milevsky, 2010) Beth’s liquid assets and current liabilities reflect this idea of debt diversification across time as most of her liquid assets are held in her savings account which is a low interest taxable account and she is not paying off her outstanding debts immediately, for example, she could be paying off her HECS debt more regularly. Liquidity Ratio Liquid assets = $3500 + $9000 + $8800 = $21300 Monthly Liabilities = 800 + 400 + 200 + 60 = $1460 Liquidity ratio = 21300/1460 x 100 = 14.59 Debt ratio Total debt = 21000 + 3000 = 24000 Disposable income = 48000 Debt ratio = 24000/48000 = 0.5 6.
Beth should aim to increase the savings in her bank account by setting a specific goal over a certain time frame. By increasing her savings, she can improve her basic liquidity ratio. This will lessen her vulnerability to the risk of losing income over a period of time. In her current financial position, if Beth were to lose her main source
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Related Questions
Required
PO. 379
#1*
1 Which of the following represents financially
responsible actions?
L Spending within your means
IL. Paying minimum credit.card paymentseach
month
III. Paying yourself first
IV. Spending money according to budget
A land IV only
B I, I, and IV only
C l and Il only
D IV only
D.
arrow_forward
215T 55209796/chapter/6/section/1
ntitative Reasoning I home > 6.1: Personal finance
E zyBo
Monthly, Val's net earnings are $4,500, and expenses are $4,000. How much
should Val have in savings for a 3-month emergency fund?
$ Ex: 12345 :
2.
Check
Next
Provide feedback
assignment: Wk 5 - Readings and Assignments [due Mon]
EST
29/1
arrow_forward
orki
Saved
Help
Save & Exit Submit
TABLE 9-2 Rates for Retirement Savings Contributions Credit
Check my work
Modified Adjusted Gross Income
Joint Return
Head of Household
Determine the retirement savings contributions credit in each of the following independent cases Use
Table 9-2
Over
0
Not Over
Over
Not Over
$ 41,000
S
0
$ 30,750
All Other Filing Status
Over
S O
Applicable
Percentage
Not Over
$ 20,500
50%
Retirement
Savings
Contributions
41,000
44,000
30,750
33,000
20,500
22,000
20%
44,000
68,000
33,000
51,000
22,000
34,000
10%
Credit
68,000
51,000
34,000
0%
A married couple filing jointly with modified AGI of $37.500 and an IRA contribution of $1,800.
b. A married couple filing jointly with modified AGI of $58,000 and an IRA contribution of $1.900
c. Ahead of household taxpayer with modified AGI of $33,000 and Roth IRA contribution of $1,990
d. A single taxpayer with modified AGI of $12,000 and an IRA contribution of $2,800.
arrow_forward
Courses
Mastering Chernie X
2MateryCheme X
loud/modules/unproctoredTest.QuestionSheet
McCraith-Sectic x
Updte
Help Caroline Achienge S01243611acadceduLogout
all 2021 I Chapter 1 Consumer Finance / Section 1.5 Digital Exercises
Gradebook.
Extemat
kercises
Remaining Time Unimted
Suppose you are paid $3,000 per month and your employer's 401(k) matches your contributions by 10% up to a
maximum of 15% of your pay. Assuming you max-out your retirement savings and you work for 25 years, how
much will the 401(k) be worth when you retire (if you can get an APR of 8% during your work years)? If you are
taxed at a rate of 27%, then how much will you have when you retire?
Round all answers to 2 decimal places.
Before taxes retirement amount $
Number
After taxes retirement amount $
Number
Submit Assignment
Quit & Save
Васк
Question Menu 4
Next
38°F Partly sunny A 0)
411 PM
11/19/202
end
home
delete
prt sc
144
4+
4-
40
num
lock
backspace
&
8.
6.
7.
home
|近
arrow_forward
Balance on April 1, 2020Debtors control Dr. $65, 145Debtors control Cr. 600Creditors control Dr. 950Creditors control Cr. 75, 500Totals for the month of April 2020Cash purchases 35, 600Credit purchases 62, 600Cash Sales 47, 000Credit Sales 75, 000Contra entry: Set off 1, 800Refund to cash customers 2, 800Bad debt written off 3, 300Discount Allowed 3, 750Total payments to suppliers 87, 000Total receipt from customers 98, 800Discount received 5, 500Dishonoured cheques: customers 2, 900Increase in the allowance for bad debts 2, 100Return Inwards 2, 400Return Outwards 15, 200Balances at 30 April 2020Debtors control: Dr. ? Cr: $8 300Creditors control: Dr. $7 500 Cr: ?Required: Prepare the Sales ledger control account Prepare the Purchases control account
arrow_forward
EXHIBIT 8-11 2021 Earned Income Credit Table
(4)
(1)
(3)
Maximum Earned
Credit Phase-Out for
AGI (or earned income
Income Eligible
Maximum
Credit
Qualifying
Children
(2)
if greater) Over This
Amount
for Credit
Credit %
(1) × (2)
Married taxpayers filing joint returns
01100
11 LIS
0
$9,820
15.3%
$1.502
$14,820
1
10,640
34
3,618
25,470
15.98
2
14,950
40
5,980
25,470
21.06
3+
14.950
45
6.728
25,470
21.06
All taxpayers except married taxpayers filing joint returns
ORD CHIT EL
0
$9,820
15.3%
$ 11,610
$1.502
3,618
1
10,640
34
19,520
2
14.950
40
5,980
19,520
3+
14,950
45
6,728
19.520
Source: Internal Revenue Code. "Rev. Proc. 2020-45. " www.irs.gov.
SI DU
નવીura વ
(5)
Phase-Out
Percentage
15.3%
15.3%
15.98
21.06
21.06
No Credit When AGI
(or earned income if
greater) Equals or
Exceeds This Amount
(4) + [(3)/(5)]
$24,637
48,108
53,865
57,414
$21,427
42,158
47,915
51.464
arrow_forward
Pls solve this question correctly instantly in 5 min i will give u 3 like for sure
arrow_forward
C. P177.60
d.
P29.60
P74.40
P300
P620
30%
e.
4. Find the (a) cash discount and (b) net amount due if the following invoices are paid within the discoun
period.
Net invoice price
P3,265
Net amount due
Terms of payment
3 п
Cash discount
10'30
P 1,342
15'60
2 n
P985
5'15
5. Find the (a) deadline for discount period, (b) deadline for credit period, (c) cash discount and (d)
amount due for the following cases.
Deadline
of
discount
Net
Deadline
of credit
Invoice
Terms of
Cash
Invoice
date
amount
due
amount
payment
discount
period
period
1 n
P 1,675
Jan. 15
15'45
P645
Feb. 25
10'30
1n
P 895
March 12
10'45
3 2
P785
April 22
.
15'20'90
6. The net invoice price of a wall clock is P287.00. If the discount granted was 18%, find:
a. Net invoice price rate
b. List price
C. Discount
7. The net invoice price of a dining table is P6,187.50, representing 75% of the list price. Find:
a. List price
b. Discount
arrow_forward
ss
arrow_forward
EXHIBIT 8-10 2023 Earned Income Credit Table
Qualifying
Children
0
1
2
34
0
1
2
3+
(1)
Maximum Earned
Income Eligible
for Credit
$7,840
11,750
16,510
16,510
(2)
Credit %
7.65%
34
40
45
(3)
Maximum
Credit
(1) x (2)
Married taxpayers filing joint returns
$16,370
28,120
28,120
28,120
(4)
Credit Phase-Out for
AGI (or earned income
if greater) over This
Amount
$ 600
3,995
6,604
7,430
7.65%
34
40
45
$7,840
11,750
3,995
16,510
6,604
16,510
7,430
Source: Internal Revenue Code. "Rev. Proc. 2022-38." www.irs.gov
All taxpayers except married taxpayers filing joint returns
$ 600
(5)
Phase-Out
Percentage
$9,800
21,560
21,560
21,560
7.65%
15.98
21.06
21.06
7.65%
15.98
21.06
21.06
No Credit When AGI
(or earned income if
greater) Equals or
Exceeds This Amount
(4) + [(3)/(5)]
$24,210
53,120
59,478
63,398
$17,640
46,560
52,918
$56,838
arrow_forward
Sh12
Please help me
Solution
Thankyou
arrow_forward
Plz solve it’s timed!!
arrow_forward
PLEASE SHOW SOLUTION THANKS
arrow_forward
Julie paid a day care center to watch her two-year-old son while she worked as a computer programmer for a local start-
up company.
What amount of child and dependent care credit can Julie claim in 2021 in each of the following alternative scenarios? Use
Exhibit 8-10
b. Julie paid $5,650 to the day care center and her AGI is $52,600 (all salary).
Child and dependent care credit
arrow_forward
Learning
SE MINDTAP
evo/index.html?deploymentid=60338517901669990751687760&elSBN=9780357517642&nbld=3626933&snap... ☆
lomework
6300.
1
mancial Lailuialvi vi a spicoubnicel.
Hide Feedback
Correct
X
f6
Quantitative Problem 1: You plan to deposit $2,200 per year for 6 years into a money market account with an annual return of 2%. You plan
to make your first deposit one year from today.
a. What amount will be in your account at the end of 6 years? Do not round intermediate calculations. Round your answer to the nearest cent.
4
b. Assume that your deposits will begin today. What amount will be in your account after 6 years? Do not round intermediate calculations.
Round your answer to the nearest cent.
6
Hide Feedback
Incorrect
F
Check My Work Feedback
Review the FVAN definition and its equation.
Q Search
Understand the difference between an ordinary annuity and an annuity due.
Be careful about the order of mathematical operations if using the equation.
If using a financial calculator, be…
arrow_forward
Need help plz
arrow_forward
V Content
Pearson (Assignments) - MA
Ô https://www.mathxl.com/Student/PlayerTest.aspx?testld%3D225147196
3 103 Spring 2021
st: Test 2 (Finance) Online
nis Question: 1 pt
5 of 19 (1 complete) ▼
How much must be deposited today into the following account in order to have a $135,000 college fund in 11 years? Assume no additional deposits are made.
An account with quarterly compounding and an APR of 7.32%
Sshould be deposited today.
(Do not round until the final answer. Then round to the nearest cent as needed.)
arrow_forward
In detail please
arrow_forward
Takaful company has the following
information:
Earned contributions SR 500
Net claim incurred SR 100
Cash SR 50
Short-term investment SR 150
Average assets SR 1500
Total expenses SR 200
Net income SR 100
Gross contributions SR 600
Net contributions SR 550
What is expense ratio?
а.
40%
b.
30%
С.
36.3%
d.
50%
arrow_forward
34 The following applies to this question: DEBTORS CONTROL Mar 1 Balance b/f 90 000 Mar 31 Bank A Mar 31 Sales B Sales returns 5 000 Balance c/f 40 000 140 000 140 000 Apr 1 Balance b/f 40 000 Which one of the following amounts represents B?
A. R180 000
B. R100 000
C. R230 000
D. R50 000
arrow_forward
Locker Rent 3500
Income from Government securities 2274
Interest on deposits 473
Transfer fees received 576
Rent and Lighting 767
From the above information Total Non-Interest income will be:
a.
OMR 5790
b.
OMR 6350
c.
OMR 6530
d.
OMR 7590
arrow_forward
2.1
arrow_forward
Subject: acounting
arrow_forward
A
B
D
F
1 Loan (PV)
$ 300,000.00
2 APR
4.50%
3 Monthly Rate
4 NPER
5 Monthly Payment
0.38%
360
$1,520.06
6
7 Payment Number
Beg Balance
Interest
Principal
8
1
?
?
10
3
?
11
4
12
?
13
6
14
7
?
15
8.
?
16
9
?
17
10
18
11
19
12
?
20
21 Cumulative Totals after Year 1
22 Interest
23 Principal Paid
24
25 What if the goal is $1,400 monthly payment?
26 Monthly Payment
27 Monthly Rate Needed ?
1,400.00
28 APR Needed
.....c.
arrow_forward
gageNOWv2 | Online teachin x
Grade Calculator
akeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress3false
2 Pearson Sign In
WP WileyPLUS Cengage
еВook
Tax Drill - Self-Employment Tax
In 2020, Miranda records net earnings from self-employment of $158,500. She has no other income. Determine the amount of Miranda's
self-employment tax and her for AGI income tax deduction.
In your computations round all amounts to two decimal places. Round your final answers to the nearest dollar.
Miranda's self-employment tax is $
21,320 V and she has a $
12,125 X deduction for AGI.
Feedback
Check My Work
The tax on self-employment income is levied to provide Social Security and Medicare benefits (old age, survivors, and disability insurance and
hospital insurance) for self-employed individuals.
arrow_forward
Name
Social Security #
1st Qtr.
2nd Qtr.
3rd Qtr.
4th Qtr.
Total
Robert G. Cramer
000-00-0001
$5,800
$5,000
$5,000
$5,200
$21,000
Daniel M. English (Supervisor)
000-00-0003
13,000
13,400
13,400
13,400
53,200
Ruth A. Small
000-00-1998
2,000
2,300
2,300
2,400
9,000
Harry B. Klaus
000-00-7413
11,600
11,700
11,700
11,700
46,700
Kenneth N. George (Manager)
000-00-6523
13,600
14,000
14,500
15,000
57,100
Mavis R. Jones
000-00-6789
1,600
1,700
1,700
-0-
5,000
Marshall T. McCoy
000-00-3334
11,400
11,400
-0-
-0-
22,800
Bertram A. Gompers (President)
000-00-1014
24,500
25,000
25,500
26,300
101,300
Arthur S. Rooks
000-00-7277
-0-
700
1,700
1,700
4,100
Mary R. Bastian
000-00-8111
8,000
8,200
8,200
8,200
32,600
Klaus C. Werner
000-00-2623…
arrow_forward
◄ Photos 12:50 PM Sat Dec 3
AA
www.walmart.com/c...
Acellus
admin251.acellus.com
B My Math Solver | bar...
X A Acellus - The Scienc...
A certain state uses the following
progressive
tax rate for calculating individual income tax:
Income
Range ($)
Progressive
Tax Rate
0 - 10,000
3%
10,001 - 50,000
5%
50,001 100,000
5.5%
Calculate the state income tax owed on a $60,000
per year salary.
tax = $[?]
Round your answer to the nearest whole dollar amount.
Enter
Copyright © 2003 - 2022 International Academy of Science. All Rights Reserved.
Ć
66%
+88
G certain state uses th...
7
Help Resources
arrow_forward
Fast pls i will give u like for sure solve this question correctly in 5 min pls
arrow_forward
I need help with the income statement.
arrow_forward
SEE MORE QUESTIONS
Recommended textbooks for you
Related Questions
- Required PO. 379 #1* 1 Which of the following represents financially responsible actions? L Spending within your means IL. Paying minimum credit.card paymentseach month III. Paying yourself first IV. Spending money according to budget A land IV only B I, I, and IV only C l and Il only D IV only D.arrow_forward215T 55209796/chapter/6/section/1 ntitative Reasoning I home > 6.1: Personal finance E zyBo Monthly, Val's net earnings are $4,500, and expenses are $4,000. How much should Val have in savings for a 3-month emergency fund? $ Ex: 12345 : 2. Check Next Provide feedback assignment: Wk 5 - Readings and Assignments [due Mon] EST 29/1arrow_forwardorki Saved Help Save & Exit Submit TABLE 9-2 Rates for Retirement Savings Contributions Credit Check my work Modified Adjusted Gross Income Joint Return Head of Household Determine the retirement savings contributions credit in each of the following independent cases Use Table 9-2 Over 0 Not Over Over Not Over $ 41,000 S 0 $ 30,750 All Other Filing Status Over S O Applicable Percentage Not Over $ 20,500 50% Retirement Savings Contributions 41,000 44,000 30,750 33,000 20,500 22,000 20% 44,000 68,000 33,000 51,000 22,000 34,000 10% Credit 68,000 51,000 34,000 0% A married couple filing jointly with modified AGI of $37.500 and an IRA contribution of $1,800. b. A married couple filing jointly with modified AGI of $58,000 and an IRA contribution of $1.900 c. Ahead of household taxpayer with modified AGI of $33,000 and Roth IRA contribution of $1,990 d. A single taxpayer with modified AGI of $12,000 and an IRA contribution of $2,800.arrow_forward
- Courses Mastering Chernie X 2MateryCheme X loud/modules/unproctoredTest.QuestionSheet McCraith-Sectic x Updte Help Caroline Achienge S01243611acadceduLogout all 2021 I Chapter 1 Consumer Finance / Section 1.5 Digital Exercises Gradebook. Extemat kercises Remaining Time Unimted Suppose you are paid $3,000 per month and your employer's 401(k) matches your contributions by 10% up to a maximum of 15% of your pay. Assuming you max-out your retirement savings and you work for 25 years, how much will the 401(k) be worth when you retire (if you can get an APR of 8% during your work years)? If you are taxed at a rate of 27%, then how much will you have when you retire? Round all answers to 2 decimal places. Before taxes retirement amount $ Number After taxes retirement amount $ Number Submit Assignment Quit & Save Васк Question Menu 4 Next 38°F Partly sunny A 0) 411 PM 11/19/202 end home delete prt sc 144 4+ 4- 40 num lock backspace & 8. 6. 7. home |近arrow_forwardBalance on April 1, 2020Debtors control Dr. $65, 145Debtors control Cr. 600Creditors control Dr. 950Creditors control Cr. 75, 500Totals for the month of April 2020Cash purchases 35, 600Credit purchases 62, 600Cash Sales 47, 000Credit Sales 75, 000Contra entry: Set off 1, 800Refund to cash customers 2, 800Bad debt written off 3, 300Discount Allowed 3, 750Total payments to suppliers 87, 000Total receipt from customers 98, 800Discount received 5, 500Dishonoured cheques: customers 2, 900Increase in the allowance for bad debts 2, 100Return Inwards 2, 400Return Outwards 15, 200Balances at 30 April 2020Debtors control: Dr. ? Cr: $8 300Creditors control: Dr. $7 500 Cr: ?Required: Prepare the Sales ledger control account Prepare the Purchases control accountarrow_forwardEXHIBIT 8-11 2021 Earned Income Credit Table (4) (1) (3) Maximum Earned Credit Phase-Out for AGI (or earned income Income Eligible Maximum Credit Qualifying Children (2) if greater) Over This Amount for Credit Credit % (1) × (2) Married taxpayers filing joint returns 01100 11 LIS 0 $9,820 15.3% $1.502 $14,820 1 10,640 34 3,618 25,470 15.98 2 14,950 40 5,980 25,470 21.06 3+ 14.950 45 6.728 25,470 21.06 All taxpayers except married taxpayers filing joint returns ORD CHIT EL 0 $9,820 15.3% $ 11,610 $1.502 3,618 1 10,640 34 19,520 2 14.950 40 5,980 19,520 3+ 14,950 45 6,728 19.520 Source: Internal Revenue Code. "Rev. Proc. 2020-45. " www.irs.gov. SI DU નવીura વ (5) Phase-Out Percentage 15.3% 15.3% 15.98 21.06 21.06 No Credit When AGI (or earned income if greater) Equals or Exceeds This Amount (4) + [(3)/(5)] $24,637 48,108 53,865 57,414 $21,427 42,158 47,915 51.464arrow_forward
- Pls solve this question correctly instantly in 5 min i will give u 3 like for surearrow_forwardC. P177.60 d. P29.60 P74.40 P300 P620 30% e. 4. Find the (a) cash discount and (b) net amount due if the following invoices are paid within the discoun period. Net invoice price P3,265 Net amount due Terms of payment 3 п Cash discount 10'30 P 1,342 15'60 2 n P985 5'15 5. Find the (a) deadline for discount period, (b) deadline for credit period, (c) cash discount and (d) amount due for the following cases. Deadline of discount Net Deadline of credit Invoice Terms of Cash Invoice date amount due amount payment discount period period 1 n P 1,675 Jan. 15 15'45 P645 Feb. 25 10'30 1n P 895 March 12 10'45 3 2 P785 April 22 . 15'20'90 6. The net invoice price of a wall clock is P287.00. If the discount granted was 18%, find: a. Net invoice price rate b. List price C. Discount 7. The net invoice price of a dining table is P6,187.50, representing 75% of the list price. Find: a. List price b. Discountarrow_forwardssarrow_forward
- EXHIBIT 8-10 2023 Earned Income Credit Table Qualifying Children 0 1 2 34 0 1 2 3+ (1) Maximum Earned Income Eligible for Credit $7,840 11,750 16,510 16,510 (2) Credit % 7.65% 34 40 45 (3) Maximum Credit (1) x (2) Married taxpayers filing joint returns $16,370 28,120 28,120 28,120 (4) Credit Phase-Out for AGI (or earned income if greater) over This Amount $ 600 3,995 6,604 7,430 7.65% 34 40 45 $7,840 11,750 3,995 16,510 6,604 16,510 7,430 Source: Internal Revenue Code. "Rev. Proc. 2022-38." www.irs.gov All taxpayers except married taxpayers filing joint returns $ 600 (5) Phase-Out Percentage $9,800 21,560 21,560 21,560 7.65% 15.98 21.06 21.06 7.65% 15.98 21.06 21.06 No Credit When AGI (or earned income if greater) Equals or Exceeds This Amount (4) + [(3)/(5)] $24,210 53,120 59,478 63,398 $17,640 46,560 52,918 $56,838arrow_forwardSh12 Please help me Solution Thankyouarrow_forwardPlz solve it’s timed!!arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you