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 renter’s, 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 renter’s, 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 40 - hour - per - week job at $16 per hour is $16×40×4 = $2560, plus his wife's $350 gives a total of $2910. Their monthly outflow is $3000, which means they have a negative cash - flow. With only $2000 in savings, they need to manage liquidity to cover short - term obligations. They have insurance for asset protection and retirement contributions are already being made.

Answer:

B. managing liquidity