1. Preparing a Budget Sheet pp. 149-152 3-2 SECTION

2. Click to edit Master text styles Second level Third level Fourth level Fifth level 2 SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 3-2, Slide 2 of 16 3-2 Section Objective Use: records of past expenditures to prepare a monthly budget sheet

3. Click to edit Master text styles Second level Third level Fourth level Fifth level 3 SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 3-2, Slide 3 of 16 3-2 living expenses (p. 149) Routine expenses, such as food, utilities, and clothing, that vary from month to month. fixed expenses (p. 149) Regular expenses that do not vary from month to month, such as rent and car payment. Key Words to Know

4. Click to edit Master text styles Second level Third level Fourth level Fifth level 4 SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 3-2, Slide 4 of 16 3-2 annual expenses (p. 149) Expenses which occur once a year, such as insurance premiums and real estate taxes. Key Words to Know

5. Click to edit Master text styles Second level Third level Fourth level Fifth level 5 SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 3-2, Slide 5 of 16 3-2 Total Monthly MonthlyMonthly Share Monthly = Living + Fixed + of Annual ExpensesExpensesExpenses Expenses Formula

6. Click to edit Master text styles Second level Third level Fourth level Fifth level 6 SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 3-2, Slide 6 of 16 3-2 Why do you think Classified’s expenses were highest last summer? A Rock Star’s Lyrical Leverage p. 149

7. Click to edit Master text styles Second level Third level Fourth level Fifth level 7 SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 3-2, Slide 7 of 16 3-2 The Millers use records of their past expenditures to complete the budget sheet shown on page 150 in your textbook. What is the total of their monthly expenses? Example 1

8. Click to edit Master text styles Second level Third level Fourth level Fifth level 8 SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 3-2, Slide 8 of 16 3-2 Step: Find the total monthly expenses. Monthly MonthlyMonthly Share Living + Fixed + of Annual Expenses Expenses Expenses $505.00 + $978.50 + $219.29 = $1,702.79 Example 1 Answer

9. Click to edit Master text styles Second level Third level Fourth level Fifth level 9 SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 3-2, Slide 9 of 16 3-2 The Browns have monthly living expenses of $875.00, monthly fixed expenses of $1,025.80, and annual expenses of $4,974.00. After calculating the Browns’ monthly share of annual expenses, find their total monthly expenses. Example 2

10. Click to edit Master text styles Second level Third level Fourth level Fifth level 10 SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 3-2, Slide 10 of 16 3-2 Find the monthly share of annual expenses. Annual Expenses 12 $4,974 = $414.50 12 Example 2 Answer: Step 1

11. Click to edit Master text styles Second level Third level Fourth level Fifth level 11 SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 3-2, Slide 11 of 16 3-2 Add up the expenses. Monthly Monthly Monthly Share Living + Fixed + of Annual Expenses Expenses Expenses $875.00 + $1,025.80 + $414.50 = $2,315.30 Example 2 Answer: Step 2

12. Click to edit Master text styles Second level Third level Fourth level Fifth level 12 SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 3-2, Slide 12 of 16 3-2 Find the total monthly expenses. Living: $846 Fixed: $1,560 Annual expenses: $4,644 Practice 1

13. Click to edit Master text styles Second level Third level Fourth level Fifth level 13 SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 3-2, Slide 13 of 16 3-2 $2,793 Practice 1 Answer

14. Click to edit Master text styles Second level Third level Fourth level Fifth level 14 SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 3-2, Slide 14 of 16 3-2 Find the total monthly expenses. Living: $638 Fixed: $972 Annual expenses: $4,980 Practice 2

15. Click to edit Master text styles Second level Third level Fourth level Fifth level 15 SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 3-2, Slide 15 of 16 3-2 $2,025 Practice 2 Answer

16. Preparing a Budget Sheet 3-2 END OF SECTION