Case Study: Carol Jones

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 Carols assets.

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

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