Balance Sheet Name(o)t him and Jane Huang Date: December 31, 2012 Assets Liquid Assets Cash $246,45 Checking 271.10 Savings 308.06 Total Liquid Assets: Liabilities and Net Worth Current Liabilities Electric $350.17 150.07 Water Insurance premiums 250.13 $825.61 1,012.50 Taxes Mortgage Auto MasterCard 750.00 750.38 $1,440.00 650.33 Investments Retirement funds, TRA Total Investments: $1,440.00 $4,044.140 Real Property Total Current Llabilities: Long-Term Liabilities Primary residence mortgage Total Long-Term Liabilities: Primary residence $145,800.00 $36,000.00 $145,800.00 $36.000.000 Total Real Property Personal Property Honda Pilot Total Personal Property $11,495.00 $11,495.00 (2) Total Liabilities: $40,044.140 $119,516 470 (1) Total $169,660.610 Net Worth (1)-(2) Assets: $159,560.610 Total Liabilities and Net Worth: Based on the completed balance sheet, the Huangs net worth is $119,516.470 It isn't just the preparation of a balance sheet but the interpretation of the data that can reveal a family's financial condition. Jim and Jane Huang are both age 44. Using data from the 2012 Federal Reserve Bulletin (shown) and the Huangs' balance sheet, what conclusions can you draw? $260,000 $240,000 $220,000 $216,800 $206,700 $200,000 $180,000 $179,400 $160,000 $140,000 Median Net Worth $120,000 $117.900 $100,000 $80,000 $60,000 $42,100 $40,000 $20,000 $9,300 $0 35-44 Less than 35 45-54 55-64 65-74 75 or more Source: Jestle 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 (une 2012): 17, http://www.federalreserve.gov/pub/Bulletin/2012/articles/sc/sdf.htm. with their balance sheet in place, Jim and Jane 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 Huangs are above the median net worth for their age group. Their home would be considered their dominant asset Based on their liabilities, it does not 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 S