Consider Jack and Annes financial information below as you create a balance sheet, cash flow statement, and analyze their CURRENT financial ratios. Make sure you double check the amounts given in the case study to see if any were mistakenly left off this list.

Jacks annual salary: $28,500

Jacks withhold (federal/state taxes:) $3,388

Jacks withhold (Medicare and security): $2,142

Saving account: $20,000

Checking account: $12,000

Jacks undergraduate student loans: $50,552

Jacks student loan monthly payments: $665

Gifts per month: $120

Donation to Association for Disabled Veterans: $150

Donation to American Cancer Society: $100

Couples therapy (2 times per month): $100

Annes annual salary: $23,000

Annes withhold (federal/state taxes): $2,521

Annes withhold (Medicare and security): $1,760

Jack received the Mary Dempsy Fellowship: $1,000

Dine out each time (four times per month): $65

Jack lunch with cohort twice a week: $10 per meal

Anne lunch with cohort twice a week: $10 per meal

Grocery shopping per month: $550

Entertainment ($80 twice a month): $160

Cell-phone plan: $120

Apartment rent (monthly): $786

Parking fee (monthly): $120

Electricity fee: $40

Boxing trainer per month: $125

Jacks Visa credit card balance (APR 11%): $3,000

Annes BOA Visa credit card balance (APR 10%): $1,000

Monthly credit card payment (per card): $120

High speed Internet: $45

Jacks 2016 Infiniti Q50 2.0T value: $35,000

Jacks 2016 Infiniti Q50 2.0T loan amount: $21,800

Monthly car loan payment: $380

Monthly car insurance: $87

Annes monthly Uber transportation: $300

Boxing club monthly pass (per person): $75

1. Balance Sheet (10 points) Develop a balance sheet statement for this couple (show your work). A balance sheet should include their assets, liabilities, and net worth value. Be sure to include their assets (what they own) and their liabilities (what they owe). Calculate their net worth (show your work!). Write a paragraph explaining what this means about their current financial health given where they are in life.

2. Cash Flow Statement (Income and Expense Statement) (10 points) Develop a monthly cash flow statement for this couple (show your work inflows (income i.e. money coming in) and outflows (expenses i.e. money going out). Calculate their surplus/deficit (show your work!). Include a write-up answering the following questions:

What is their monthly surplus/deficit?

What are they doing well? Please explain your assessment.

Are there opportunities for change and improvement?

3. Financial Ratios (12 points) Calculate their Liquidity ratio, Asset-to-Debt ratio, and Debt to income ratio (show your work!). Write a paragraph for each ratio explaining what each ratio means for Jack and Annes financial situation.