Carol works as a business representative for an import/export company. Her job provides her with the opportunity to travel and experience new things. Because she travels so much, Carol feels that she does not have a handle on her finances. She has decided to pay a visit to a financial advisor for help.

Carol's Salary

$2,000

Auto Payment

$262

Home

$100,000

Mastercard

$5,000

Int 15%

Gas/Heating

$100

Visa Card

$3,000

Int 15%

Electric

$125

Bloomingdale Card

$1,500

Int 29%

Water

$60

Personal Loan

$5,000

Int 5%, 60 mths

Internet/Cable

$150

Mortgage

$95,000

Phone

$50

Mortgage Payment

$796

Cell Phone

$200

Car

$20,000

Food

$250

Gym Membership

$20

Mortgage Payment

$796

Personal Loan Payment

$94

Car Insurance

$165

Carol's 401K

$50,000

Savings

$500

Auto Loan

$15,000

Checking

$1,000

Visa Payment

$60

Lawn Service

$100

Bloomingdale Payment

$30

Mastercard

$100

· Apply financial planning concepts to advise Carol and explain how Carol can benefit from financial planning. Describe the benefits of using financial statements in financial planning.

· Utilize and explain strategies that Carol can use to increase her net worth. How does this affect her cash flow?

· Describe the sources available for asset management.

· Compile a list of legal protections that can be used to protect Carol’s assets.

· Using the information provided for Carol create a balance sheet and cash flow statement. Estimate Carol’s overall net worth.