eBook Do the Math 3-5 Construct Financial Statements Thomas Green, of Laramie, Wyoming, has been a retail 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 receives $500 per month for child support from Amanda's mother. Thomas invests $100 each month ($50 in his mutual fund and $50 in U.S. savings bonds). Amount $ 6,000 5,000 ASSETS Vested retirement benefits (no employee contribution) Money market account (includes $150 of interest earned last year) Mutual fund (includes $200 of reinvested dividend income from last year) Checking account Personal property Automobile U.S. savings bonds 5,000 1,000 4,000 12,000 2,500 LIABILITIES Outstanding Balance $ 450 3,500 6,000 Dental bill (pays $25 per month and is included in uninsured medical/dental) Visa (pays $100 per month) Student loan (pays $100 per month) ANNUAL FIXED EXPENSES Auto insurance Rent Uninsured medical/dental Federal income tax Social Security taxes Health insurance ANNUAL VARIABLE EXPENSES Dry cleaning Utilities iPhone Cable Internet Food Personal care Gas, maintenance, license Clothes Entertainment Amount $ 780 12,000 1,000 5,600 3,500 2,440 Amount $ 480 2,400 980 1,400 800 3,000 420 2,120 500 2,500 Ch 03: End-of-Chapter Problems - Financial Statements, Tools, and Budgets Cable Internet Food Personal care Gas, maintenance, license Clothes Entertainment Vacations/visitation/travel Child care Gifts Miscellaneous 1,400 800 3,000 420 2,120 500 2,500 3,000 4,910 400 300 Using the information above, construct a balance sheet and a cash-flow statement for Thomas. Round monetary values to the nearest dollar and percentage 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 % % $ % $ % % 96 $ $ 96 96 $ % $ Ch 03: End-of-Chapter Problems - Financial Statements, Tools, and Budgets WORTH Cash-Flow Statement for Thomas Green Dollars Percent $ % % $ $ % % % % 9 % 9 INCOME Thomas' salary Child support Interest and dividends TOTAL INCOME EXPENDITURES Fixed Expenses Rent Mutual fund U.S. savings bond Health insurance Auto insurance Uninsured medical/dental Taxes Debt payments Total Fixed Expenses Variable Expenses Food Utilities Phone Cable Internet Gas, maintenance, license Dry cleaning Personal care Child care Clothes Entertainment Vacation/visitation/travel Gifts Miscellaneous Total Variable Expenses TOTAL EXPENSES NET GAIN %6 96 96 9 % % % % 96 % $