Gary Fletcher is your new client. Four years ago he graduated from GBC. Since then he has worked hard and has done well at his job. Two years ago he bought a condo, now he finds that money is tight. He is looking for your input on his financial position. Below is his annualized financial data as at December 31, 2020: (incomes and expenses are annual; assets & liabilities are balances as of December 31, 2020)

 Required

a)    Net Worth Statement 

b)    Cash Flow Statement 

c)    Assess fully Gary's Cash Flow position from b). 

d)    Calculate and EVALUATE his Emergency Fund Ratio 

e)    Calculate and EVALUATE his Saving Ratio 

f)     Calculate and EXPLAIN his Debt Ratio. 

g)    Calculate and EVALUATE his Total Debt Service Ratio (TDSR) 

h)    Identify and justify which expense(s) you recommend Gary decrease. Ensure that you explain fully your rationale for the expense(s) included. 
 

 

Employment Income Chequing Account Canada Saving Bonds Stock Portfolio GIC (5-year term) Car Loan CPP/EI Deductions Income Taxes Mortgage Payments $89,000 $2,000 $4,000 $13,000 $9,000 $18,000 $5,200 $33,000 $14,000 $5,000 $12,000 $1,080 Charitable donations $1,000 RPP Contributions $2,070 Food Expense Loan Payments RRSP Contributions Insurance premiums RRSP Condo Car Student Loan Line of Credit (outstanding) Mortgage Debt Clothing Heat, Water, Electricity Entertainment Transportation Vacation Property Taxes Parking $3,000 $21,000 $360,000 $25,000 $22,000 $19,000 $246,000 $2,500 $4,000 $5,000 $1,740 $4,000 6000 $2,760