2. Jerry is preparing to go to college in the fall and is worried about expenses. He has \($189\) in his checking account, \($2,500\) in his savings account, and a CD account for \($5,000\) that matures September 1. He owes his brother \($75\) for a joint gift. His parents are able to send him \($1,000\) each month, but room, board, and tuition will run \($1,800\) per month. He is unsure of his book expenses.

a. Prepare Jerry’s personal financial net worth statement.

What is his current net worth? (LO 2-1)

b. Will he be able to focus his time on school, or will he need to subsidize his expenses by getting a job or a student loan for the next year? To assess his choices, create his cash flow statement. Does he have a positive or a negative cash flow? (LO 2-1)

c. What are the risks he incurs by taking fewer credits each year so he can more easily handle a parttime job to offset his living expenses? (LO 2-2)

d. What do you think Jerry should do? (LO 2-3)