1st drop down selection: less than, above, within

2nd drop down selection: net worth, total assets, home

3rd drop down selection: does, does not

Balance Sheet Name(s): Jim and Jane Huang Date: December 31, 2012 Assets Liquid Assets Cash $221.10 Checking 243.21 Savings 276.38 Total Liquid Assets: Liabilities and Net Worth Current Liabilities Electric $350.17 Water 150.07 Insurance premiums 250.13 Taxes 1,125.00 Mortgage 833.33 Auto 750.38 MasterCard 650.33 $740.69 Investments Retirement funds, $1,063.13 IRA Total Investments: $1,063.13 $4,109.410 Real Property Total Current Liabilities: Long-Term Liabilities Primary residence mortgage Total Long-Term Liabilities: Primary residence $162,000.00 $39,999.84 $162,000.00 $39,999.840 Total Real Property: Personal Property Honda Pilot Total Personal Property: $11,495.00 $11,495.00 (2) Total Liabilities: $44,109.250 $131,189.570 $175,298.820 Net Worth (1)-(2): (1) Total Assets: $171,189.410 Total Liabilities and Net Worth: It isn't just the preparation of a balance sheet but the interpretation of the data that can reveal a family's financial condition. Jim and Jane Huang are both age 44. Using data from the 2012 Federal Reserve Bulletin (shown) and the Huangs' balance sheet, what conclusions can you draw? $260,000 - $240,000 - $220,000 $216,800 $206,700 $200,000 $180,000 $179,400 $160,000 - $140,000 Median Net Worth $120,000 $117,900 $100,000 $80,000 $60,000 $42,100 $40,000 - $20,000 $9,300 $0 Less than 35 35-44 45-54 55-64 65-74 75 or more Age Source: Jessie Bricker et al., "Changes in U.S. Family Finances from 2007 to 2010: Evidence from the Survey of Consumer Finances," Federal Reserve Bulletin 98, no. 2 (June 2012): 17, http://www.federalreserve.gov/pubs/Bulletin/2012/articles/scf/scf.htm. With their balance sheet in place, Jim and Jane can compare their total liabilities to their total assets to generate a more realistic view of their current wealth position. The Federal Reserve Bulletin provides data on median net worth, broken down by age brackets. . Based on the Federal Reserve Bulletin data, the Huangs are the median net worth for their age group. Their would be considered their dominant asset. . Based on their liabilities, it appear that they have adequate liquid assets to meet their bill payments and to cover any small, unexpected expenses. Their balance sheet lists their house at 8% higher than the purchase price. The equity in their home is $