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Preparing Cash Budget: Theo and Sophia Martinez are preparing their 2021 cash budget. Help the Martinez family reconcile the following differences, giving reasons to support your answers.

a. Their only source of income is Theo's salary, which amounts to $5,000 per month before taxes. Sophia wants to show the $5,000 as their monthly income, whereas Theo argues that his take-home pay of $3,917 is the correct value to show.

b. Theo wants to make a provision for fun money, an idea that Sophia doesn't understand. She asks, "Why do we need fun money when everything is provided for in the budget?"​

Sagot :

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