Preparing cash budget. Richard and Elizabeth Walker are preparing their cash budget. Help the Walkers reconcile the following differences, giving reasons to support your answers. a. Their only source...

Preparing cash budget. Richard and Elizabeth Walker are preparing their cash budget. Help the Walkers reconcile the following differences, giving reasons to support your answers.

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

b. Elizabeth wants to make a provision for fun money, an idea that Richard cannot understand. He asks, “Why do we need fun money when everything is provided for in the budget?”