A personal balance sheet is the financial picture of how much "wealth" you have accumulated as of a certain date. It specifically lists your assets (i.e., what you own) and your liabilities (i.e., what you owe). Your current net worth is the difference between the assets and the liabilities.

net worth = assets liabilities

Tom and Carol Jackson have asked for your help in preparing a personal balance sheet. They have listed the following assets and liabilities: current value of home, $147,000; audio/video equipment, $1,340; automobiles, $17,600; personal property, $4,350; computer, $3,700; mutual funds, $26,700; 401(k) retirement plan, $53,680; jewelry, $4,800; certificates of deposit, $19,300; stock investments, $24,280; furniture and other household goods, $8,600; balance on Walmart and Sears charge accounts, $4,868; automobile loan balance, $8,840; home mortgage balance, $106,370; Visa and MasterCard balances, $4,212; savings account balance, $3,700; Carol's night school tuition loan balance, $2,750; checking account balance, $1,385; signature loan balance, $6,350.

PERSONAL BALANCE SHEET

ASSETS

CURRENT ASSETS
Checking account	_____
Savings account	_____
Certificates of deposit	_____
Other	_____
Total Current Assets		_____
LONG-TERM ASSETS
Investments
Retirement Plans	_____
Stocks	_____
Bonds	_____
Mutual Funds	_____
Other	_____
Personal
Home	_____
Automobiles	_____
Furniture	_____
Personal Property	_____
Jewelry	_____
Other	_____
Other	_____
Total Long-Term Assets		_____
TOTAL ASSETS		_____

LIABILITIES

CURRENT LIABILITIES
Store charge accounts	_____
Credit card accounts	_____
Other current debt	_____
Total Current Liabilities		_____
CURRENT LIABILITIES
Home mortgage	_____
Automobile loan	_____
Education loan	_____
Other loan	_____
Other loan	_____
Total Long-Term Liabilities		_____
TOTAL LIABILITIES		_____
NET WORTH
Total Assets	_____
Total Liabilities	_____
NET WORTH		_____

Use the data provided and the personal balance sheet to calculate the following for the Jacksons.

(a)

total assets (in $)

$

(b)

total liabilities (in $)

$

(c)

net worth (in $)

$

(d)

Explain the importance of the personal balance sheet. How often should this information be updated?