Adele Smith, a 28 year old University graduate, never took a personal finance class. She pays her bills on time, has managed to save a little in mutual funds, and with the help of an inheritance managed to buy a condominium. Adele worries about her financial situation. Given the following information prepare an income statement, balance sheet and perform a ratio analysis (including asset allocation) for Adele. Be sure to indicate fixed and flexible expenses on the Income and Expense Statement.

Adele has provided you with the following list:

Visa balance $355 (payment required of 5% of balance monthly or $10 which ever is

Greater)

Stocks $5500

Mastercard $245 (payment required of 5% of the balance monthly or $10 whichever is

Greater)

Monthly paycheque (net) $2400

Mortgage monthly $530

Phone bill $85

Cable bill $42

Mutual Fund (invested in bonds) $1800

RRSP (invested in equity funds) $4500

Car payment monthly $235

Power bill monthly $60

Water and Sewer bill annually $200

House taxes annually $960

Savings account balance $1100

Chequing account balance $825

Car insurance (semiannually) $450

House and land $65000

Food monthly $225

Mortgage outstanding $52000

Car loan outstanding $4225

Miscellaneous expenses (monthly) $150

Entertainment monthly $200

Monthly contribution to RRSP $100

Pontiac G6 $8000

House Insurance annually $350