(a) Calculate the clients net worth, by preparing a balance sheet.

(b) Calculate the following ratios: Debt ratio and current ratio .

Based on the net worth number that you calculated for the client and the value of the ratios; tell us what kind of financial position would you consider her to be in: strong, weak, average, and explain why you have that opinion.

(c) Do you think your clients financial position should be different from what it appears to be, on paper, as far as her Net Worth is involved?

Are there any things about the clients net worth that do not seem to be consistent with other clients that you have, who make similar amounts of money, and have a similar amount of net worth?

You are the financial adviser to one of your clients, a single, 40 yrs. old owner of a trucking/shipping company here in Calgary. Her trucking company is very profitable and the salary she pays herself has averaged $210,000 in each of the last three years. Please examine the following information of that client: $ 1,105 Chequing account balance Saving account balance House 800 1,900,000 45,000 Income taxes owed to government Household effects and personal items 160,500 Automobiles (car, pickup trucks, motorcycles) 115,000 Tax-free savings account 2,300 Visa card balance 2,100 Master card balance 545 Utility bills (gas, electricity, cable, etc.) 470 Mortgage 14,000