FIN-250: Personal Financial Planning Homework 4 In this assignment, you will create personal financial statements. 2. Create a balance sheet and estimate your net worth. It is up to you what you will include on the asset side. You definitely should include any bank accounts, investment accounts, or retirement savings. You can include anything where you can easily estimate the resale value (like a car). I generally would not include other items (like clothes or computers), but that is up to you. On the liability side, get current values for all of your debts. Categorize them by when they must be paid. (Short = less than 1 year, Long = more than 1 year.) If you have no debts, then great. The difference between these is your current net worth (which you should report). 2. Create an (approximate) income statement for the last year. This will probably require a lot of guess work on your part. Tax records or paycheck stubs will help with the income part. (Also include scholarships, etc. as income.) The expense part will be harder but do your best. We will revisit this later when you have your expenditures tracked for a while. 3. Based on these financial statements, calculate the following ratios from the slides. a. Liquidity Ratio b. Savings Ratio c. Debt-to-Income Ratio d. Debt-to-Disposable Income Ratio e. Asset-to-Debt Ratio Total Debt Ratio Note - If your net worth is negative, the last one makes no sense. These ratios are usually pretty terrible for 20-year-olds in general and college students in particular, so don't worry