1. Where do I find the Social security and Medcare ratio in problem #3?

2. Where does the FACTOR come from in the solution to problem #4?

thanks!

Paul Strebel, CPA, CFP Preliminary Exam - March 4, 2010 Question Sheet - HA 3325 Exam # - - - - Problems Section: Problem #1 Financial Calculations and Ratios (10 points) Mike's Personal Balance Sheet, December 31, 2009 Assets Checking account Savings account Total liquid assets $4,100 6,500 $10,600 Home furnishings Clothing Market value of automobile Total Personal Property $11,800 2,500 38,800 $53,100 Market value of home Total Real Property $340,000 $340,000 Total Assets $403,700 Debts Mortgage payment Utilities Credit card payments Total current bills $2,480 580 370 $3,430 Credit card balances Car loans Total Short-term debt $9,600 15,600 $25,200 Home mortgage balance Total Long-term debt $243,300 $243,300 Total Liabilities $271,930 9 Question Sheet - HA 3325 Exam # - - - - Paul Strebel, CP A, CFP Preliminary Exam - March 4, 2010 Mike's Personal Cash Flow Statement Cash Outflows Cash Inflows Salary (gross) Interest income Total cash inflow Monthly $12,400 98 $12,498 Monthly Income/payroll taxes $1,020 Groceries 600 Mortgage payment 2,480 Utilities 580 Credit card payments 370 Gas for car 370 Insurance payments 880 Clothing 250 Gifts 250 Entertainment 950 Total cash outflows $7,750 Based on the information, calculate Mike's net worth, net cash flow, liquidity ratio, debt ratio, and savings ratio. 10 Answer Sheet - HA 3325 - Exam # ___7___ Paul Strebel, CPA, CFP PRELIMINARY EXAM - March 4, 2010 NAME Problem #1 Answer: (10 points) Show all work. tk+- (as\\) Y:low -::. TokA\\ c.o~~ \\~ - Tc:rt-QI ~'" out~low Net Cash Flow: ~ 124q% - = Liquidity Ratio: lIquid T~t $ ~llio $ 41-4-'0 o.SSe.rS:. :. $. \\ Ob 00 el(peA\\Stt.s Debt Ratio: To~\\ To+O' be.b\\Q~se~ ::. ~ $ 2.=l-1 q~o 0'''1-- :: (,' 24QS - ~ \\0'2. 0) - $ 4:J.4-~ !f. \\ \\ u.:r~ - 4 0,4\\ l, ~=J- 'T-=rt;o ~o~':f-Oo $ Savings Ratio: = = C:zdp) (2.dp) Paul Strebel, CPA, CFP Preliminary Exam - March 2,2011 Question Sheet HA 3325 Problem #3 FICA Tax Calculation Problem (5 points) Ralph's Social Security and Medicare Wages Alice's Social Security and Medicare Wages $136,000 $104,800 Calculate the following amounts for 2011 : 1. Social Security Tax Withheld for Ralph 2. Medicare Tax Withheld for Ralph 3. Social Security Tax Withheld for Alice 4. Medicare Tax Withheld for Alice 5. FICA Tax Liability - Employer Match for Ralph and Alice Note - the 2011 Social Security Tax maximum wages is $106,800. Problem #4 Present and Future Value Calculations (10 points) 1. What is the present value of receiving $10,000 each year for 5 years at an interest rate of7%? 2. How much do we need to invest today at 9% interest, compounded annually, if we need $70,000 in 5 years? 3. You will be receiving $200,000 in 8 years. Using a 6% interest rate, compounded annually, how much is that worth today? 4. How much will you have in 10 years if you save $20,000 per year at an 8% interest rate, compounded annually? 5. What much will $40,000 be worth in 9 years assuming a 5% interest rate, compounded annually? FICA 106,800 SS Medicare 4.20% 1.45% Ralph 136,000 4,485.60 1,972.00 6,457.60 Alice 104,800 4,401.60 1,519.60 5,921.20 12,378.80 Total Employee Portion Company Match SS Medicare 6.20% 1.45% Ralph 136,000 8,432.00 1,972.00 10,404.00 Alice 104,800 6,497.60 1,519.60 Total Company Match 8,017.20 18,421.20 PVA