8. DeadPool is trying to organise his finances to see if he has enough money to buy a car as he is sick of relying on taxis. He needs to be able to pay $400/ month if he goes ahead with the car loan. He would also have the additional costs of car insurance, petrol and car maintenance. He thinks the insurance would cost about $1000/year, petrol would be about $80/fortnight and car maintenance would be about $800/year. He earns $1150 net/week. DeadPool knows what his regular expenses are but he needs to be able to have money for additional expenses for things such as clothes, doctor's bills and presents. He would also like to try and save $50 / pay. These are the regular expenses without the car loan: Food/ takeaway Rent Phone Gas $270/week Foxtel $50/month $220/week $30/month $60/month $140/month Taxi/Travel Entertainments $120/week Savings Miscellaneous $60/week $50/week Electricity ?? Does DeadPool have enough spare money to buy the car? a) Prepare a weekly budget for his expenses without the car. b) Prepare a weekly budget for his expenses if he buys the car. You will need to make adjustments for petrol, car insurance and maintenance as well as the loan costs. You may need to cut costs where you can. c) DeadPool has run out of sick leave and he gets injured. He is off work for 2 weeks to heal. His out of pocket expenses for the doctor's bill and X-rays are $56 and $135 respectively. He also has an ambulance bill of $894 as he didn't have any health cover. Discuss what this would do to his budget? You may want to consider whether he had any savings behind him or not.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

DeadPool is trying to organise his finances to see if he has enough money to buy a car as he is sick of relying on Taxis.

He needs to be able to pay $400/month if he goes ahead with the car loan. He would also have the additional costs of car insurance,petrol and car maintenance. He thinks the insurance would cost about $1000/year, petrol would be about $80/fortnight and car maintenance would be about $800/year

He earns $1150 net/week. Deadpool knows what his regular expenses are but he needs to be able to have money for additional expenses for things such as clothes , doctor's bills and presents. Please see picture for Questions and chart

8. DeadPool is trying to organise his finances to see if he has enough money to buy a car as he is
sick of relying on taxis.
He needs to be able to pay $400/ month if he goes ahead with the car loan. He would also have
the additional costs of car insurance, petrol and car maintenance. He thinks the insurance would
cost about $1000/year, petrol would be about $80/fortnight and car maintenance would be about
$800/year.
He earns $1150 net/week. DeadPool knows what his regular expenses are but he needs to be
able to have money for additional expenses for things such as clothes, doctor's bills and presents.
He would also like to try and save $50 / pay.
These are the regular expenses without the car loan:
Food/
takeaway
Rent
Phone
Gas
$270/week
Foxtel
$50/month
$220/week
$30/month
$60/month
$140/month
Taxi/Travel
Entertainments $120/week
Savings
Miscellaneous
$60/week
$50/week
Electricity
??
Does DeadPool have enough spare money to buy the car?
a) Prepare a weekly budget for his expenses without the car.
b) Prepare a weekly budget for his expenses if he buys the car.
You will need to make adjustments for petrol, car insurance and maintenance as well as the loan
costs. You may need to cut costs where you can.
c) DeadPool has run out of sick leave and he gets injured. He is off work for 2 weeks to heal. His
out of pocket expenses for the doctor's bill and X-rays are $56 and $135 respectively. He also has
an ambulance bill of $894 as he didn't have any health cover. Discuss what this would do to his
budget? You may want to consider whether he had any savings behind him or not.

Expert Solution

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions