Problem
Rika and Kentaro have a combined income of $140,000. Assume their average tax rate including fed/state is 20%. Rika's income is $60,000 and Kentaro's is $80,000.
FICA taxes for both of them total $10,710. Calculate their combined federal and state tax using the information above.
They each save $600 per month. Their mortgage payment is $3,833 per month (PITI), they lease two cars for a total of $6,000 per year and have college loan payments of $120 per month.
Their utilities are roughly $150 a month and they estimate they spent about $210 a week on food. The premiums for their auto insurance totalled $1600 for the year.
They had some other expenses for 2021 they did not itemize that totalled $9,000.
Task
Use the information above to create an Annual Personal Income and Expense Statement for the Miura's for 2021. Personal Income and Expense Statements double as Personal Cash Flow Statements for households since they do everything on a cash basis. It's worth noting that Personal Expense Statements can look slightly different from one another and may have fewer or more categories for income and/or expenses depending on the household. Be careful to read through the information above carefully and pay attention to detail as the amounts are listed for different time periods but you are creating an annual Income and Expense Statement.