Cash flow statement is attached at the bottom.

We will now start developing an understanding of some financial issues that surviving family members may face, when a breadwinner dies. In this assignment, you will prepare a cash flow statement for the scenario where Kwame died unexpectedly. For the purposes of this assignment, lets make the following assumptions:

1. Laticia delivers a healthy baby.

2. Kwame dies unexpectedly, and Laticia is raising the child as a single mother.

3. Laticia goes back to work and makes the same amount of money she was making before her maternity leave

a) Ignore the Balance Sheet tab in this assignment, youll only be working in the Cash Flows table.

b) Leave the base scenario annual and monthly cash flow columns in place, for reference. Copy those columns, paste them into the next two available columns on the right.

c) Title both scenarios something like Base case and If Kwame dies.

d) Go through each income and expense item and modify those that will likely change under this new scenario.

To do this assignment well, it helps to think this through from the point of view of the surviving spouse. Imagine yourself in Laticias position, and think what each line on your familys list of income and expenses would look like, if Kwame were to die. Which amounts would go lower or higher? Which ones would appear or disappear entirely?

For the cash flows that will change (e.g., babysitter cost and other child-related expenses), do some research online as to how much that can cost in NYC, where Kwame and Laticia live. Make some reasonable assumptions about those costs there is going to be a range of reasonable realistic amounts, not just one correct amount for each line.

After you research and modify each component of income and expenses, see how the bottom line number (the cash flow surplus) looks in the scenario where Kwame died, compared to the base scenario.

To complete this assignment, please do BOTH of the following:

Enter your bottomline amount (Laticias cash flow surplus or deficit)