justin is married with one child. he works 40 hours each week at a rate of $16 per hour. his wife began…

justin is married with one child. he works 40 hours each week at a rate of $16 per hour. his wife began working part time after their daughter was born, but still contributes about $350 to the cash inflow each month. their monthly cash outflow is generally about $3,000. they have a balance of $2,000 in their savings account. justin has retirement contributions taken out of his paycheck at work. they have renters, car and life insurance coverage. based on this information, what part of their financial plan should justin and his wife work on? a. managing income b. managing liquidity c. protecting assets d. retirement please select the best answer from the choices provided

justin is married with one child. he works 40 hours each week at a rate of $16 per hour. his wife began working part time after their daughter was born, but still contributes about $350 to the cash inflow each month. their monthly cash outflow is generally about $3,000. they have a balance of $2,000 in their savings account. justin has retirement contributions taken out of his paycheck at work. they have renters, car and life insurance coverage. based on this information, what part of their financial plan should justin and his wife work on? a. managing income b. managing liquidity c. protecting assets d. retirement please select the best answer from the choices provided

Answer

Brief Explanations:

Justin's monthly income from his job is $16\times40\times4 = 2560$ plus his wife's $350$, so total monthly income is about $2560 + 350=2910$. With a monthly cash - outflow of $3000$, they have a deficit. Their savings balance is only $2000$. They need to manage liquidity to cover short - term financial needs. They have income sources (managing income is not the main issue), have insurance for asset protection, and are making retirement contributions.

Answer:

B. managing liquidity