2. Balance sheet - Net worth and interpreting the data The following is a partial balance sheet for Andy and Kim Garza. Complete the balance sheet by determining their total assets, total current liabilities, long-term liabilities, and net worth. Balance Sheet Name(s): Andy and Kim Garza Date: December 31, 2012 Assets Liabilities and Net Worth Current Liabilities Liquid Assets Cash Checking Electric $350.17 $195.75 215.33 244.69 Water 150.07 Savings Insurance premiums Total Liquid Assets: $655.77 1,125.00 Mortgage 833.33 750.38 Investments Retirement funds, IRA Total Investments: $1,063.13 MasterCard 650.33 $1,063.13 Total Current Liabilities: Long-Term Liabilities Real Property Primary residence $162,000.00 Primary residence $39,999.84 mortgage $162,000.00 Total Long Term Total Real Property: Ch 02: Assignment - Using Financial Statements and Budgets 833.33 750.38 Investments Retirement funds, IRA Total Investments: $1,063.13 650.33 $1,063.13 Mortgage Auto MasterCard Total Current Liabilities: Long Term Liabilities Primary residence mortgage Total Long Term Liabilities: Real Property Primary residence $162,000.00 $39,999.84 $162,000.00 Total Real Property: Personal Property Honda Pilot Total Personal Property $11,247.50 $11,247.50 (2) Total Liabilities: (1) Total Assets Net Worth (1) - (2) Total Liabilities and Net Worth: Based on the completed balance sheet, the Garzas' net worth is It isn't just the preparation of a balance sheet but the interpretation of the data that can reveal a family's financial condition. Andy and Kim Garza are both age 44. Using data from the 2012 Federal Reserve Bulletin (shown) and the Garzas' balance sheet, what conclusions can you draw? It isn't just the preparation of a balance sheet but the interpretation of the data that can reveal a family's financial condition. Andy and Kim Garza are both age 44. Using data from the 2012 Federal Reserve Bulletin (shown) and the Garzas' balance sheet, what conclusions can you draw? $216,800 $206,700 $260,000 $240,000 $220,000 $200,000 $180,000 $160,000 $140,000 $120,000 $100,000 $179,400 Median Net Worth $117.900 $80,000 $42,100 $60,000 $40,000 $20,000 $0 - $9,300 Less than 35 35-44 45-54 65-74 75 or more 55-64 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/sc/e.htm. $50,000 $42,100 $40,000 - $20,000 $9,300 Less than 35 35-44 65-74 75 or more 45-54 55-64 Age Sourc e Bridere . Changes in US. Family Finances from 2007 to 2010: Evidence from the survey of Consumer Finances Federal no. 2 (une 2012): 17. http://www.federalreserve.gov/pubs/Bulletin/2012/articles/adod.htm With their balance sheet in place, Andy and Kim 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 Garzas 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