Assets, Liabilities and Net Worth

Allen has come to you for help preparing personal financial statements.He presents you with the following facts.His assets and liabilities include:

$2,000 in a Credit Union Checking account

$3,000 in a Credit Union Savings account

$12,000 in a Brokerage account

Real Estate Investment Trust (Private Partnership) purchased for $12,000, where current market value is $7,500

With his employer he has a 401K with a balance of $20,000.

Life Insurancewith a $250,000 death benefit and a cash value of $14,000

A home purchased for $160,000 with a mortgage balance of $140,000, currently worth $180,000.

A boat worth $8,000.

Acar purchased for $37,500 where the current blue book value is $28,000 and he owes $18,000 on his auto loan

In addition to the assets above, Allen has a credit card balance of $1,950 and a balance of $40,000 outstanding on a student loan.

NET WORTH STATEMENT

ASSETS LIABILITIES

Cash/Cash Equivalents Liabilities

Checking account $ - Credit card balance $ -

Credit Union Savings Account - Student Loan Debt -

Money Market Account - Auto note balance -

Life Insurace Cash Value - Mortgage Balance -

Total Cash/Cash Equivalents - Total Liabilities -

Invested Assets

Stock portfolio -

Business -

IRAs -

401k or Vested Pension -

Total Invested Assets - TOTAL LIABILITIES -

Use Assets

Residence - NET WORTH -

Automobiles -

Personal property -

Total Use Assets -

TOTAL ASSETS - TOTAL LIABILITIES -

AND NET WORTH