$0 $453 1. Given the following information, develop a beginning-of-the-year statement of financial position. Beginning date January 1, 2018 End date December 31, 2018 Client name Frank and Lois Fox Beginning Ending Income/Expenses Balance Balance Amount (Yearly) Section 401(k) plan deferrals $750 Section 401(k) plan-Frank $1,500 Section 403(b) plan deferrals $990 Section 403(b) plan-Lois $990 Auto loan $15,432 $10,436 Auto loan interest $381 Auto loan principal $4,996 Auto maintenance $600 Automobile Frank $20,000 $18,000 Automobile Lois $5,750 $5,175 Automobile insurance premiums $2,124 Checking $10,000 $15,570 Child support $2,400 Clothing $3,600 Credit card $10,870 $10,417 Credit card payments interest $1,707 Credit card payments principal Entertainment $4,200 FICA and federal income tax (W/H) $11,449 Food $4,800 Furniture/household $36,000 $34,000 Go-cart $1,200 Homeowners insurance premiums $534 Jewelry $6,000 $6,100 Maid/child care $4,800 Mortgage on residence $72,960 $72,164 Mortgage payment interest $5,808 Mortgage payment principal $796 Personal residence $85,000 $89,250 Property tax (principal residence) $850 Reinvestment in savings account/trust $5,675 Salary-Frank $25,000 Salary-Lois $33,000 Savings $13,500 $14,175 Savings account/trust fund interest $5,675 Trust fund $100,000 $105,000 Tuition and education expenses $2,893 Utilities $2,100 Additional transactions: Made a joint gift of bedroom furniture with a fair market value of $2,000 to Frank's little sister Section 401(k) plan employer match = 3% of income Bought a go-cart for their son for $1,200 2. Use the data in Problem 1 to create a personal statement of cash flows. $0 3. Use the data in Problem 1 to create a statement of changes in net worth. 4. Use the data in Problem 1 to create an end-of-the-year statement of financial position. 5. Use the results from problems 1-4 to calculate the following ratios for year-end: a. Emergency fund b. Current ratio c. Total debt to net worth d. Long-term debt to net worth e. Total debt to total assets f. Long-term debt to total assets g. Monthly housing costs to monthly gross income h. Monthly housing costs and other debt repayments to monthly gross income i. Savings ratio Net cash flow plus savings to annual gross income k. Income on investments I. Return on investments m. Investment assets to annual gross income 6. Discuss the financial position of the Foxes as based on the ratios you calculated in the previous problem. $0 $453 1. Given the following information, develop a beginning-of-the-year statement of financial position. Beginning date January 1, 2018 End date December 31, 2018 Client name Frank and Lois Fox Beginning Ending Income/Expenses Balance Balance Amount (Yearly) Section 401(k) plan deferrals $750 Section 401(k) plan-Frank $1,500 Section 403(b) plan deferrals $990 Section 403(b) plan-Lois $990 Auto loan $15,432 $10,436 Auto loan interest $381 Auto loan principal $4,996 Auto maintenance $600 Automobile Frank $20,000 $18,000 Automobile Lois $5,750 $5,175 Automobile insurance premiums $2,124 Checking $10,000 $15,570 Child support $2,400 Clothing $3,600 Credit card $10,870 $10,417 Credit card payments interest $1,707 Credit card payments principal Entertainment $4,200 FICA and federal income tax (W/H) $11,449 Food $4,800 Furniture/household $36,000 $34,000 Go-cart $1,200 Homeowners insurance premiums $534 Jewelry $6,000 $6,100 Maid/child care $4,800 Mortgage on residence $72,960 $72,164 Mortgage payment interest $5,808 Mortgage payment principal $796 Personal residence $85,000 $89,250 Property tax (principal residence) $850 Reinvestment in savings account/trust $5,675 Salary-Frank $25,000 Salary-Lois $33,000 Savings $13,500 $14,175 Savings account/trust fund interest $5,675 Trust fund $100,000 $105,000 Tuition and education expenses $2,893 Utilities $2,100 Additional transactions: Made a joint gift of bedroom furniture with a fair market value of $2,000 to Frank's little sister Section 401(k) plan employer match = 3% of income Bought a go-cart for their son for $1,200 2. Use the data in Problem 1 to create a personal statement of cash flows. $0 3. Use the data in Problem 1 to create a statement of changes in net worth. 4. Use the data in Problem 1 to create an end-of-the-year statement of financial position. 5. Use the results from problems 1-4 to calculate the following ratios for year-end: a. Emergency fund b. Current ratio c. Total debt to net worth d. Long-term debt to net worth e. Total debt to total assets f. Long-term debt to total assets g. Monthly housing costs to monthly gross income h. Monthly housing costs and other debt repayments to monthly gross income i. Savings ratio Net cash flow plus savings to annual gross income k. Income on investments I. Return on investments m. Investment assets to annual gross income 6. Discuss the financial position of the Foxes as based on the ratios you calculated in the previous