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CHAPTER 2 ASSIGNMENT Your client is having trouble figuring out where all her money goes each month. Here is her financial information for you to
CHAPTER 2 ASSIGNMENT Your client is having trouble figuring out where all her money goes each month. Here is her financial information for you to review: MONTHLY VISA BILL $355* CHECKING ACCOUNT BALANCE $$825 STOCKS IN BROKERAGE ACCT $5,500 QUARTERLY AUTO INSURANCE (NOT YET DUE) $450 MASTER CARD BILL $245* ANTIQUE COIN COLLECTION $3,250 MONTHLY PAYCHECK (GROSS) $3,000 CONDOMINIUM $65,000 PAYROLL TAX WITHHELD $ 600 MONTHLY GROCERIES $225 MONTHLY MORTGAGE PAYMENT $530 AUTOMOBILE $9,000 MUTUAL FUNDS $2,100 FURNITURE $5,500 401(K) RETIREMENT ACCT $4,500 MORTGAGE BALANCE $50,000 MONTHLY CAR PAYMENT $265 AUTO LOAN BALANCE $4,225 MONTHLY UTILITY BILL $275* OTHER PERSONAL PROPERTY $8,000 SAVINGS ACCT BALANCE $2,300 OTHER MONTHLY CASH EXPENSES $150 MONTHLY CLOTHING EXPENSES $45 ANNUAL MEDICAL EXPENSES $264 *Bills represent the average of the prior month's charges AND ALSO current month's expenses. Questions: 1) What are the Monetary Assets listed above? 2) What are the Investment Assets listed above? 3) What are the Retirement Assets listed above? 4) How much are the Total Assets? 5) What are the Current (short term) Debts listed above? 6) What are the total debts? 7) What is your client's net worth? 8) What is the Current Ratio? 9) What is the Debt Ratio? HINT: Since they are average amounts you may assume that the credit card and utility bills are both a debt (related to the prior month) and an expense (related to the current month)
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