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Calculate the individual's Savings Ratio based upon the following information (show all work for credit): Assets Value Cash $500 Checking + $1,200 Savings/CDs + $1,300
Calculate the individual's Savings Ratio based upon the following information (show all work for credit):
| Assets | Value |
| Cash | $500 | ||||||
| Checking | + | $1,200 | |||||
| Savings/CDs | + | $1,300 | |||||
| Money Market Funds | + | $500 | |||||
| Other Monetary Assets | + | $90 | |||||
| A. | Monetary Assets | A. | = | $3,590 | |||
| Mutual Funds | $5,600 | ||||||
| Stocks | + | $9,500 | |||||
| Bonds | + | ||||||
| Life Insurance (cash-value) | + | ||||||
| Cash Value of Annuities | + | ||||||
| Investment Real Estate (REITs, partnerships) | + | ||||||
| Other investments | + | ||||||
| B. | Investments | B. | = | $15,100 | |||
| 401(k) and 403(b) | $2,500 | ||||||
| Company Pension | + | $8,000 | |||||
| Keogh | + | ||||||
| IRA | + | $8,000 | |||||
| Other Retirement Plans | + | ||||||
| C. | Retirement Plans | C. | = | $18,500 | |||
| Primary Residence | $170,000 | ||||||
| 2nd Home | + | $70,000 | |||||
| Time-Shares/Condominiums | + | ||||||
| Other Housing | + | ||||||
| D. | Housing (market value) | D. | = | $240,000 | |||
| Automobile 1 | $8,000 | ||||||
| Automobile 2 | + | $4,000 | |||||
| Other Automobiles | + | ||||||
| E. | Automobiles | E. | = | $12,000 | |||
| Collectibles | |||||||
| Boats | + | ||||||
| Furniture | + | $11,000 | |||||
| Other Personal Property | + | ||||||
| F. | Personal Property | F. | = | $11,000 | |||
| Money Owed You | |||||||
| Market Value of Your Business | + | ||||||
| Other | + | ||||||
| G. | Other Assets | G. | = | $0 | |||
| H. | Total Assets (add lines A through G) | H. | = | $300,190 |
| Liabilities or Debts | Value |
| I. | Current Bills (unpaid balance) | I. | = | $350 | |||
| Visa | $1,150 | ||||||
| Master Card | + | ||||||
| Other Credit Cards | + | ||||||
| J. | Credit Card Debt | J. | = | $1,150 | |||
| First Mortgage | $105,000 | ||||||
| 2nd Home Mortgage | + | $52,000 | |||||
| Home Equity Loan | + | $9,000 | |||||
| Other Housing Debt | + | ||||||
| K. | Housing | K. | = | $166,000 | |||
| Automobile 1 | $3,000 | ||||||
| Automobile 2 | + | ||||||
| Other Automobile Loans | + | ||||||
| L. | Automobile Loans | L. | = | $3,000 | |||
| College Loans | $4,000 | ||||||
| Loans on Life Insurance Policies | + | ||||||
| Bank Loans | + | ||||||
| Installment Loans | + | $1,000 | |||||
| Other | + | ||||||
| M. | Other Debts | M. | = | $5,000 | |||
| N. | Total Debt (add lines I through M) | N. | = | $175,500 | |||
| Net Worth |
| H. | Total Assets | H. | + | $300,190 | |||
| N. | Less: Total Debt | N. | - | $175,500 | |||
| O. | Equals: Net Worth | O. | = | $124,690 | |||
| Income | |
| Wages and salaries | |
| Wage Earner 1 | 57500 |
| + Wage Earner 2 | 12000 |
| = Total Wages and salaries | 69500 |
| + Interest and Dividends | 720 |
| + Royalties, Commissions and Rents | |
| + Other Income | |
| = A. Total Income | 70220 |
| Taxes | |
| Federal Income and Social Security | 11830 |
| + State Income | 1880 |
| = B. Total Income Taxes | 13710 |
| C. After-Tax Income Available for Living Expenditures | 56510 |
| or Take-Home Pay (line A minus line B) | |
| Living Expenses | |
| Housing | |
| Rent | |
| + Mortgage Payments | 19656 |
| + Utilities Maintenance, Taxes, Furniture, Other | 10820 |
| = D. Total Housing Expenditures | 30476 |
| Food | |
| Food and Supplies | 5800 |
| + Restaurant Expenses | 1400 |
| = E. Total Food Expenditures | 7200 |
| Clothing and Personal Care | |
| = F. Total Clothing and Personal Care Expenditures | 2590 |
| Transportation | |
| Automobile Purchase | |
| + Payments | 2588 |
| + Gas, Tolls, Parking, Other | 1550 |
| = G. Total Transportation Expenditures | 4138 |
| Recreation | |
| + Vacations | 2000 |
| + Other Recreation Expenses | 1700 |
| = H. Total Recreation Expenditures | 3700 |
| Medical Expenditures | |
| = I. Total Medical Expenditures | 410 |
| Insurance Expenditures | |
| Health | |
| + Life | 420 |
| + Automobile | 1260 |
| + Disability | 260 |
| = J. Total Insurance Expenditures | 1940 |
| Other Expenditures | |
| Educational Expenditures (college loan payment) | 1600 |
| + Child Care | 180 |
| + Other Expenses | |
| = K. Total Other Expenditures | 1780 |
| L. Total Living Expenditures (add lines D-K) | 52234 |
| M. Income Available for Savings and Investment | 4276 |
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Entrepreneurial Finance
Authors: Simon Hulme, Chris Drew
1st Edition
1352009811, 978-1352009811
