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Can you please help me understand how toconstruct a balance sheet and a cash-flow statement. Construct Financial Statements. John Green has been a retail salesclerk

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Can you please help me understand how toconstruct a balance sheet and a cash-flow statement.image text in transcribed

Construct Financial Statements. John Green has been a retail salesclerk for six years. At age 35, he is divorced with one child, Amanda, age 7. John's salary is $36,000 per year. He regularly receives $400 per month for child support from Amanda's mother. John invests $100 each month ($50 in his mutual fund and $50 in U.S. savings bonds). Using the following information, construct a balance sheet and a cash-flow statement for John. ASSETS Amount Vested retirement benefits (no employee contribution) $3,000 Money market account (includes $150 of interest earned last year) 5,000 Mutual fund (includes $200 of reinvested dividend income from last year) 4,000 Checking account 1,000 Personal property 5,000 Automobile 3,000 U.S. savings bonds LIABILITIES 3,000 Outstanding Balance Dental bill (pays $25 per month and is included in uninsured medical/dental) Visa (pays $100 per month) 1,500 Student loan (pays $100 per month) 7,500 ANNUAL EXPENSES Amount Auto insurance Rent 9,100 Utilities1,200 Phone 680 Cable 360 $780 $ 450 Food 3,000 Uninsured medical/dental 1,000 ANNUAL EXPENSES Amount Dry cleaning $480 Gas, maintenance, license Clothes 2,120 500 Entertainment 1,700 Vacations/visitation travel Child care Gifts 3,820 400 Miscellaneous 300 Taxes 6,400 Health insurance 2,440 1,300

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