BFIN $2551255$ Net Worth Assignment

$20$ Marks$/5\backslash \%$ of Grade

In Chapter $2,$ we had been exploring the concept of money management and measuring financial sustainability.

In this assignment, you can apply some of that information to assist a client.

You are the financial advisor to one of your clients, a single, $50-$something owner of a trucking $/$ shipping company here in Calgary. Her trucking company is very profitable, and the salary she pays herself has averaged $\backslash$$$210,000$ in each of the last ten years.

Please examine the following information of your client:

$|$

Question $1$

Calculate the client's net worth, by preparing a balance sheet in a way that is similar to what appears in PowerPoint $15$ in Chapter $2,$ and also similar to the example that was included in your Case Study. $(4$ marks$)$

Based on the net worth number that you calculated for the client, tell us what kind of financial position would you consider her to be in: strong, weak, average, and explain why you have that opinion. $(8$ marks$)$

Question $3$

Do you think your client's 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 client's net worth that do not seem to be consistent with other clients that you have, who make similar amounts of money, but have a much higher net worth?

You should have a number of questions that you would like to explore with your client, so that you might be in a position to provide her with some financial or life$-$situation advice.

$(8$ marks$)$

Format: This assignment is to be submitted as a Word document, using $11$ or $12$point font, with each of your answers numbered, please.

Earning a

Mark: You will earn a mark by providing a relevant piece of information, a statement of provable fact, or an opinion $/$ question $/$ conclusion $($also supported by relevant information$).$

Value: $\backslash (\backslash$quad $\backslash )$ The assignment is out of $20$ marks and is worth five $(5)\backslash \%$ of your course grade.

Due date To be Determined and announced in writing and email. Assignments uploaded later than $11$:$00$ p$.$m$.$ will not be graded.

Questions The sooner they are asked, the sooner they can be answered.