Financial Statements and Project Wesley and Cienna Froelich heard that you were taking the FINA 201 course at the University of Charleston. Due to their limited knowledge in personal finance, they are in a desperate need of your help! They want to know how well they are doing financially and how could they improve their situation. Based on the information they provided to you: 1. Construct an Income and Expense Statement 2. Construct their Balance Sheet. 3. Calculate their financial well-being through the use of ratios. 4. Provide recommendations. Wesley's Salary (Net) $ 45,000 Cienna's Salary (Net) 45,000 Home value 220,000 Mortgage payment 9,200 2014 Toyota Corolla fair market value $ 18,000 Checking Account balance $ 1,500 Groceries $ 8,500 Investment Account balance 500 2014 Toyota Corolla loan payment 4,400 Past Due Utility Bill 250 Utilities 3,000 Best Buy Credit Card Balance 3,000 Entertainment 3,200 2014 Toyota Corolla loan balance 12,400 Stamp Collection $ 2,500 Gas $ 2,300 Mortgage balance S 148,600 Best Buy Credit Card Payments S 600 Jewelry $ 1,800 Savings set aside each year towards a new car S 900 Tax Refund $ 200 Money Market Account balance $ 1,300 h (United States) 45,000 45,000 220,000 9,200 18,000 1,500 8,500 500 4,400 250 Wesley's Salary (Net) Cienna's Salary (Net) Home value Mortgage payment 2014 Toyota Corolla fair market value Checking Account balance Groceries Investment Account balance 2014 Toyota Corolla loan payment Past Due Utility Bill Utilities Best Buy Credit Card Balance Entertainment 2014 Toyota Corolla loan balance Stamp Collection Gas Mortgage balance Best Buy Credit Card Payments Jewelry Savings set aside each year towards a new car Tax Refund Money Market Account balance 1999 Chevy Malibu fair market value 401(k) Account balance Cash Auto Insurance payments Auto Registration Home and Auto Maintenance Credit Card Balance "used to buy groceries and paid off monthly $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ s $ $ $ $ $ $ 3,000 3,000 3,200 12,400 2,500 2,300 148,600 600 1,800 900 200 1,300 1,400 750 120 1,350 1,800 5,500 150 $ Cash Flow Statement Wesley and Cienna Froelich January 1, 2017 - December 31, 2017 CASH INFLOWS Income Annual Amount Total Cash Inflows CASH OUTFLOWS Fixed Expenses Annual Amount Total Fixed Expenses Variable Expenses Total Variable Expenses Total Living Expenses (Fixed + Variable) Net Unidentified Cash Flow United States) O Focus Balance Sheet Wesley and Clenna Froelich December 31, 2017 LIABILITIES & NET WORTH ASSETS Monetary Assets Amount Current Liabilities Amount Total Monetary Assets Total Current Liabilities Investment Assets Long-Term Liabilities Total Investment Assets Total Noncurrent Liabilities Retirement Assets + Total Retirement Assets Housing Total Liabilities Total Housing Automobiles and Personal Property Net Worth Total Automobiles and Personal Property Total Assets Total Liabilities and Net Worth 147 words Erglish (United States Financial Statements and Project Ratio Financial Well-Being Analysis Wesley and Clenna Froelich RATIOS Area Calculation Living Expenses Covered Ratio Monetary Assets / Monthly Living Expenses Debt Ratio Total Liabilities/Total Assets Debt Service to Income Ratio Annual Debt Payments / Annual Income Saving Ratio Annual Savings / Annual Living Expenses Investment Assets to Total Assets Ratio (Investment Assets + Retirement Assets)/Total Assets 1 Based on your Financial Well-Being Analysis, how well are Wesley and Clenna managing their finances? Explain. Recommended 3 to 6 months less than 1 less than 36% 10% or more 10% or more Financial Statements and Project Wesley and Cienna Froelich heard that you were taking the FINA 201 course at the University of Charleston. Due to their limited knowledge in personal finance, they are in a desperate need of your help! They want to know how well they are doing financially and how could they improve their situation. Based on the information they provided to you: 1. Construct an Income and Expense Statement 2. Construct their Balance Sheet. 3. Calculate their financial well-being through the use of ratios. 4. Provide recommendations. Wesley's Salary (Net) $ 45,000 Cienna's Salary (Net) 45,000 Home value 220,000 Mortgage payment 9,200 2014 Toyota Corolla fair market value $ 18,000 Checking Account balance $ 1,500 Groceries $ 8,500 Investment Account balance 500 2014 Toyota Corolla loan payment 4,400 Past Due Utility Bill 250 Utilities 3,000 Best Buy Credit Card Balance 3,000 Entertainment 3,200 2014 Toyota Corolla loan balance 12,400 Stamp Collection $ 2,500 Gas $ 2,300 Mortgage balance S 148,600 Best Buy Credit Card Payments S 600 Jewelry $ 1,800 Savings set aside each year towards a new car S 900 Tax Refund $ 200 Money Market Account balance $ 1,300 h (United States) 45,000 45,000 220,000 9,200 18,000 1,500 8,500 500 4,400 250 Wesley's Salary (Net) Cienna's Salary (Net) Home value Mortgage payment 2014 Toyota Corolla fair market value Checking Account balance Groceries Investment Account balance 2014 Toyota Corolla loan payment Past Due Utility Bill Utilities Best Buy Credit Card Balance Entertainment 2014 Toyota Corolla loan balance Stamp Collection Gas Mortgage balance Best Buy Credit Card Payments Jewelry Savings set aside each year towards a new car Tax Refund Money Market Account balance 1999 Chevy Malibu fair market value 401(k) Account balance Cash Auto Insurance payments Auto Registration Home and Auto Maintenance Credit Card Balance "used to buy groceries and paid off monthly $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ s $ $ $ $ $ $ 3,000 3,000 3,200 12,400 2,500 2,300 148,600 600 1,800 900 200 1,300 1,400 750 120 1,350 1,800 5,500 150 $ Cash Flow Statement Wesley and Cienna Froelich January 1, 2017 - December 31, 2017 CASH INFLOWS Income Annual Amount Total Cash Inflows CASH OUTFLOWS Fixed Expenses Annual Amount Total Fixed Expenses Variable Expenses Total Variable Expenses Total Living Expenses (Fixed + Variable) Net Unidentified Cash Flow United States) O Focus Balance Sheet Wesley and Clenna Froelich December 31, 2017 LIABILITIES & NET WORTH ASSETS Monetary Assets Amount Current Liabilities Amount Total Monetary Assets Total Current Liabilities Investment Assets Long-Term Liabilities Total Investment Assets Total Noncurrent Liabilities Retirement Assets + Total Retirement Assets Housing Total Liabilities Total Housing Automobiles and Personal Property Net Worth Total Automobiles and Personal Property Total Assets Total Liabilities and Net Worth 147 words Erglish (United States Financial Statements and Project Ratio Financial Well-Being Analysis Wesley and Clenna Froelich RATIOS Area Calculation Living Expenses Covered Ratio Monetary Assets / Monthly Living Expenses Debt Ratio Total Liabilities/Total Assets Debt Service to Income Ratio Annual Debt Payments / Annual Income Saving Ratio Annual Savings / Annual Living Expenses Investment Assets to Total Assets Ratio (Investment Assets + Retirement Assets)/Total Assets 1 Based on your Financial Well-Being Analysis, how well are Wesley and Clenna managing their finances? Explain. Recommended 3 to 6 months less than 1 less than 36% 10% or more 10% or more