P3–7 Balance sheet preparation Adam and Arin Adams have collected their personal asset and liability information and have asked you to put together a balance sheet as of December 31, 2015. The following information is received from the Adams family.

a. Create a personal balance sheet as of December 31, 2015. It should be similar to a corporate balance sheet.

b. What must the total assets of the Adams family be equal to by December 31, 2015?

c. What was their net working capital (NWC) for the year? (Hint: NWC is the difference between total liquid assets and total current liabilities.)

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Cash $ 300 Retirement funds, IRA $ 2,000 Checking 3,000 2014 Sebring 15,000 Savings 1,200 2010 Jeep 8,000 IBM stock 2,000 Money market funds 1,200 Auto loan 8,000 Jewelry and artwork 3,000 Mortgage 100,000 Net worth 76,500 Medical bills payable 250 Household furnishings 4,200 Utility bills payable 150 Credit card balance 2,000 Real estate 150,000 Personal loan 3,000