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Financial Details for Mary Killington Chequing Account Balance - $975 Savings Account Balance - $6,750 Market Value of Home - $315,000 Market Value of Automobiles
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.
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