Denise Fisher's banker has asked her to submit a personal balance sheet as of June 30, 2016, in support of an application for a $6,000 home improvement loan. She comes to you for help in preparing it. So far, she has made the following list of her assets and liabilities as of June 30, 2016:

From the data given, prepare Denise Fisher's balance sheet, dated June 30, 2016 (follow the balance sheet form shown in Worksheet 2.1).
Then evaluate her balance sheet relative to the following factors:
(a) Solvency,
(b) Liquidity,
(c) Equity in her dominant asset.

Transcribed Image Text:

Cash on hand Balance in checking account Balance in money market deposit account with Southwest Savings Bills outstanding S 70 180 650 Telephone Electricity Ch $20 70 190 180 220 400 220 1,300 arge account balance Visa MasterCard laxeS nsurance Condo and property Condo mortgage loan Automobile: 2012 Honda Civic Installment loan balances 68,000 52,000 9,775 Auto loans Furniture loan 3,000 500 3,500 Personal property: Furniture Clothing 1,050 900 1,950 Investments U.S. govemment savings bonds Stock of True Lite Corp 500 3,000 3,500