Jerry is preparing to go to the university in the fall and he is worried about expenses.
Question:
Jerry is preparing to go to the university in the fall and he is worried about expenses. He has $189 in checking, $2,500 in savings, and a CD account for $5000 that matures Sept 1st. He owes his brother $75 for a joint gift in which he participated. His parents are able to send him $1,000 a month -- but room, board, and tuition will run $1,800/month. He is unsure of his book expenses.
a. Prepare his personal financial balance sheet statement. What is his current net worth?
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? To assess his choice, create his cash flow statement. Does he have a positive or negative cash flow?
c. What are the risks he incurs by taking fewer credits each year so he can more easily handle a part-time job to offset his living expenses?
Balance SheetBalance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Step by Step Answer:
a Assets Checking 189 Savings 2500 Certificate of Deposit 5000 Total Assets 7689 Liabilities Lo...View the full answer
Personal Finance Building Your Future
ISBN: 978-0073530659
1st edition
Authors: Robert B. Walker, Kristy P. Walker
