$1.$ Assess net worth her assets and liabilities with implications for her net worth increasing or decreasing, as well as relevant discussion of ratios current ratio, liquidity ratio, debt to asset ratio. Make sure to explain your analysis so that the client understands what it means to her personally. Review Module $2$ materials before writing. What are the financial risks she faces? Which is the most important?

$2.$ Assess cash flow discretionary vs necessities, etc. Make sure to explain your analysis so that the client understands what it means to her personally.

$3.$ Set $1$ goal with the client. There will be just $1$ financial goal. Explain how the goal will improve her financial situation and $.$ Use Time Value of Money $($TVM$)$ to calculate the monthly amount needed to achieve her goal. Show your TVM calculation in an appendix $($end of document, not within the letter$).$

$4.$ Identify $2-6$ discretionary costs that you imagine she will agree to reduce, in light of her preferences, in order to make funds available to achieve the goal.

$5.$ Explain current frequency$/$spending habit and give a specific, detailed explanation of how she could change her habit to reduce the necessary amount. What cash flow strategy is appropriate for this expense? Make sure your suggestion is mathematically correct, and is detailed so that she knows exactly what to do$.($e$.$g$.$ don$$t say $$reduce expense item x by $30\%.$ This is not detailed.$)$ You must explain the actions required which will result in this saving

$6.$ Create a revised cash flow statement: Re$-$create the existing cash flow statement in Excel with one additional column to show revised monthly spending. The full cash flow statement with current spending and revised spending must be there. If she will increase a debt payment, show the new amount in revised column. If there is a savings goal, add in a line to show savings for $[$name of$]$ goal and put the amount in the revised column $($previously zero$).$ The revised monthly column should show all expenses whether they are changed or not. Make sure your Excel cash flow statement has a professional appearance as described in Module $3$ Cash Flow. The Excel spreadsheet must be active. This means formulas for totals must be set up so that the document updates automatically if you change a number in any of the columns. Do not simply type in totals.

Net Worth Statement

Assets Value

Liquid assets

Bank account $1,100\mathrm{.}00$

Separate account for emergency fund $200\mathrm{.}00$

Total liquid assets $1,300\mathrm{.}00$

Household assets

Computer $1,000\mathrm{.}00$

Indoor lighting and gardening items $500\mathrm{.}00$

Furniture and household items $(15\%$ of cost assumed$)3,250\mathrm{.}00$

Total household assets $4,750\mathrm{.}00$

Total assets $6,050\mathrm{.}00$

Liabilities

Current liabilities

Credit card $(19\%$ interest$)4,500\mathrm{.}00$

Total current liabilities $4,500\mathrm{.}00$

Long term liabilities

Student Loan $(7\%$ interest$)23,350\mathrm{.}00$

Total long term liabilities $23,350\mathrm{.}00$

Total liabilities $27,850\mathrm{.}00$

Net Worth $-21,800\mathrm{.}00$

Cash flow statement

January $1$st $2024$

Gross income $60888$

Monthly Annual

Average Amount

Description

Income

Net income $430051600$

Total income $430051600$

Savings

Emergency fund $50600$

Total savings $50600$

Debt repayment

Credit card repayment of outstanding balance $2753300$

Student loan $340\mathrm{.}014080\mathrm{.}12$

Total debt repayment $615\mathrm{.}017380\mathrm{.}12$

Housing

Rent $180021600$

Tenant insurance $25300$

Furnishings and appliances $30360$

Household supplies denning, garbage bags, Etc. $5420$

Total housing $186022680$

Communications

Telephone $50600$

Internet $50600$

Entertainment subscription Netflix and music $25300$

Total communication $1251500$

Food

Groceries $2503000$

Dinning out $1401680$

Take$-$out $65780$

Lunches out $50600$

Total food $5056060$

Transportation

Driver's license renewal $1\mathrm{.}518$

Public transportation weekday only pass $81972$

Ride services $80960$

Gas money to friends $20240$

Total transportation $182\mathrm{.}52190$

Education

Tuition $($not a loan payment$)41\mathrm{.}66667500$

Total education $41\mathrm{.}67500$

Recreation hobbies entertainment habits

Travel and vacation $83\mathrm{.}33999\mathrm{.}96$

Plant and garden supplies average $41\mathrm{.}67500$

Bars and parties $60720$

Other hobbies $20\mathrm{.}83249\mathrm{.}96$

Total recreation hobbies entertainment habits $205\mathrm{.}82672469\mathrm{.}92$