Do the Math 3-5 Construct Financial Statements Thomas Green, of Laramie, Wyoming, has been a retall salesclerk for six years. At age 35, he is divorced with one child, Amanda, age 7. Thomas' salary is $46,000 per year. He regularly recelves $500 per month for child support from Amanda's mother. Thomas invests $100 each month ($50 in his mutual fund and50 in U.S. savings bonds). ASSETS Amount Vested retirement benefits (no employee contribution) 6,000 Money market account (includes $150 of interest eaned last year) 5,000 Mutual fund (includes $200 of reinvested dividend income from last 5,000 year) Checking account 1,000 Personal property 4,000 Automobile 12,500 U.S. savings bonds 3,000 LIABILITIES Outstanding Balance Dental bill (pays $25 per month and is included in uninsured medical/dental) $ 450 Visa (pays $100 per month) 3,500 Student loan (pays $100 per month) 7,000 ANNUAL FIXED EXPENSES Amount Auto insurance $780 Rent 12,000 Uninsured medical/dental 1,000 Federal income tax 5,600 Social Security taxes 3,500 Health insurance 2,440 ANNUAL VARIABLE EXPENSES Amount Dry cleaning $480 2,400 Utilities Phone 980 Cable 1,400 Intermet 800 Food 3,000 420 Personal care 2,120 Gas, malntenance, license Clothes 500 2,500 Entertainment Vacations/visitation/travel 3,100 Child care 4,910 Gifts 400 Miscellaneous 300 Using the information above, construct a balance sheet and a cash-flow statement for Thomas. Round monetary values to the nearest dollar and percentage values to two decimal places. Balance Sheet for Thomas Green Dollars Percent ASSETS Monetary Assets Checking account Money market account U.S. savings bonds Total Monetary Assets Tangible Assets Personal property Automobile Total Tangible Assets Investment Assets Mutual fund Vested retirement benefits Total Investment Assets TOTAL ASSETS LIABILITIES Short-Term Liabilities Dental bill Visa Total Short-Term Liabilities Long-Term Liabilities Student loan Total Long-Term Liabilities TOTAL LIABILITIES NET WORTH TOTAL LIABILITIES AND NET WORTH Cash-Flow Statement for Thomas Green Dollars Percent INCOME Thomas' salary Child support Interest and dividends TOTAL INCOME EXPENDITURES Fixed Expenses Mutual fund U.S. savings bond Health insurance Auto insurance Uninsure edical/dental Taxes Debt payments Total Fixed Expenses Variable Expenses Food Utilities Cable Internet Gas, maintenance, license Dry cleaning Personal care Child care Clothes Entertainment Vacationvisitation/travel Gifts Miscellaneous Total Variable Expenses TOTAL EXPENSES NET GAIN Do the Math 3-5 Construct Financial Statements Thomas Green, of Laramie, Wyoming, has been a retall salesclerk for six years. At age 35, he is divorced with one child, Amanda, age 7. Thomas' salary is $46,000 per year. He regularly recelves $500 per month for child support from Amanda's mother. Thomas invests $100 each month ($50 in his mutual fund and50 in U.S. savings bonds). ASSETS Amount Vested retirement benefits (no employee contribution) 6,000 Money market account (includes $150 of interest eaned last year) 5,000 Mutual fund (includes $200 of reinvested dividend income from last 5,000 year) Checking account 1,000 Personal property 4,000 Automobile 12,500 U.S. savings bonds 3,000 LIABILITIES Outstanding Balance Dental bill (pays $25 per month and is included in uninsured medical/dental) $ 450 Visa (pays $100 per month) 3,500 Student loan (pays $100 per month) 7,000 ANNUAL FIXED EXPENSES Amount Auto insurance $780 Rent 12,000 Uninsured medical/dental 1,000 Federal income tax 5,600 Social Security taxes 3,500 Health insurance 2,440 ANNUAL VARIABLE EXPENSES Amount Dry cleaning $480 2,400 Utilities Phone 980 Cable 1,400 Intermet 800 Food 3,000 420 Personal care 2,120 Gas, malntenance, license Clothes 500 2,500 Entertainment Vacations/visitation/travel 3,100 Child care 4,910 Gifts 400 Miscellaneous 300 Using the information above, construct a balance sheet and a cash-flow statement for Thomas. Round monetary values to the nearest dollar and percentage values to two decimal places. Balance Sheet for Thomas Green Dollars Percent ASSETS Monetary Assets Checking account Money market account U.S. savings bonds Total Monetary Assets Tangible Assets Personal property Automobile Total Tangible Assets Investment Assets Mutual fund Vested retirement benefits Total Investment Assets TOTAL ASSETS LIABILITIES Short-Term Liabilities Dental bill Visa Total Short-Term Liabilities Long-Term Liabilities Student loan Total Long-Term Liabilities TOTAL LIABILITIES NET WORTH TOTAL LIABILITIES AND NET WORTH Cash-Flow Statement for Thomas Green Dollars Percent INCOME Thomas' salary Child support Interest and dividends TOTAL INCOME EXPENDITURES Fixed Expenses Mutual fund U.S. savings bond Health insurance Auto insurance Uninsure edical/dental Taxes Debt payments Total Fixed Expenses Variable Expenses Food Utilities Cable Internet Gas, maintenance, license Dry cleaning Personal care Child care Clothes Entertainment Vacationvisitation/travel Gifts Miscellaneous Total Variable Expenses TOTAL EXPENSES NET GAIN
