Financial Details for Mary Killington

Chequing Account Balance - $975	Savings Account Balance - $6,750
Market Value of Home - $315,000	Market Value of Automobiles - $27,000
Personal Possessions - $10,500	Non-registered GICs - $13,500
TFSA mutual funds - $4,500	Car Loan - $8,500
Credit Card Balance - $10,000	Mortgage - $150,000
Student Loan - $8,500	Gross Salary - $5,200
Income deductions - $1,800	Car Loan Payment - $250
Mortgage Payment - $1,300	Property Tax Payment - $215
Life Insurance - $50	Car Insurance - $75
Utilities - $250	Phone & Internet - $125
Groceries - $400	Clothing - $50
Personal Care - $100	Gifts & Donations - $60
Student Loan Payment - $150	Parking - $35

1. Complete a balance sheet for Mary and answer the questions below. Be sure to separate the assets and liabilities into their property category in her balance sheet. For example, separate current from long term liabilities. (15 marks)

a. Balance Sheet

b. What is Marys net worth?

c. Calculate Marys Current Ratio. Explain to Mary why her Current Ratio might be a concern.

2. Complete a monthly cash flow statement for Mary and answer the questions below. Be sure to separate the different forms of income and expenses into their property categories in her cash flow statement. For example, separate fixed and variable expenses. (15 marks)

a. Cash Flow Statement

b. What is Marys cash surplus or deficit?

c. Calculate Marys Debt Payments Ratio. Explain to Mary why her Debt Payments Ratio might be a concern.