HELP debt and Medicare levy liabilities for the 20182019 financial year equal $33,825. Any budget surplus (if present) will be placed into a deposit account paying interest of 0.15 per cent per year. Any budget deficit (if present) has already used up the deposit account and is reflected in the endofyear credit card debit balance on which interest is charged at a rate of 21 per cent per year. Future year cash surpluses and positive deposit account balances in 20182019 will be used to pay down the credit card balance in 20192020. Required: 1. Prepare personal financial statements (balance sheet and income and expense) for the 20182019 financial year. 2. Use the information for Francesca developed in 1. to estimate Francescas: net worth ratio; liquidity ratio; savings ratio; and debt service ratio. Comment briefly on the state of Francescas current financial position. you may assume that Francescas tax and Medicare levy liabilities for the 20192020 financial year equal $29,500. Assume that Francescas health insurance, council rates, electricity charges, and water charges will all increase by an average 4.5 per cent next year, and that all other expenses, etc., remain unchanged. Required: 3. Develop a personal financial budget for Francesca for the 20192020 financial year. Show all workings and state any assumptions that you have made in developing your estimates and responses.

D Flow E Asset Stock F G H Liability Income Expense 1 Item from mini case 2 Gross income 3 Apartment 4 Wages 5 furniture and other 6 Bank account balance 7 Interest 8 Credit card balance 9 HELP debt 10 Car 11 Non-current lib (mortgage) 12 mortgage expense 13 Car loan 14 Car loan expense 15 charity donation 16 Life insurance 17 mobile phone and Internet expenses 18 electricity expenses 19 Car expenses 20 Strata fees 21 council rates 22 water bill 23 gas charges 24 groceries and household products 25 clothing 26 home contents insurance 27 private health insurance 28 gym membership 29 medical and other health-related costs 30 eating out and entertainment 31 $ per year $107,224 $730,000 $1,072.24 $86,500 $22,500 $168.75 $2,955 $5,325 $31,500 $285,000 $1,652.89 $10,000 $308.82 $695 $350,000 $1,460 $3,175 $3,650 $675 $1,825 $1,120 $525 $14,450 $3,230 $915 $3,105 $900 $975 $4,180 D Flow E Asset Stock F G H Liability Income Expense 1 Item from mini case 2 Gross income 3 Apartment 4 Wages 5 furniture and other 6 Bank account balance 7 Interest 8 Credit card balance 9 HELP debt 10 Car 11 Non-current lib (mortgage) 12 mortgage expense 13 Car loan 14 Car loan expense 15 charity donation 16 Life insurance 17 mobile phone and Internet expenses 18 electricity expenses 19 Car expenses 20 Strata fees 21 council rates 22 water bill 23 gas charges 24 groceries and household products 25 clothing 26 home contents insurance 27 private health insurance 28 gym membership 29 medical and other health-related costs 30 eating out and entertainment 31 $ per year $107,224 $730,000 $1,072.24 $86,500 $22,500 $168.75 $2,955 $5,325 $31,500 $285,000 $1,652.89 $10,000 $308.82 $695 $350,000 $1,460 $3,175 $3,650 $675 $1,825 $1,120 $525 $14,450 $3,230 $915 $3,105 $900 $975 $4,180