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I need help.Thanks. Case Study 4 F garden retailer in 20 full-time and the plants and egrown Gardens, LLP, is a $10 million nurse on
I need help.Thanks.
Case Study 4 F garden retailer in 20 full-time and the plants and egrown Gardens, LLP, is a $10 million nurse on retailer in Florida. Homegrown employs about 11-time and seasonal employees. The majority of plants and nursery stock that Homegrown sells es from Monromio Nurseries, a wholesaler based Alabama. Monromio is recognized throughout the South for the quality of the plants it grows and sells. Homegrown is generally happy to pay the premium prices that Monromio's plants command, because it passes the extra costs on to its customers, who value the high-quality plants it sells. However, Barry Greenstem, one of Homegrown's managing partners, is visibly upset after speaking with the owners of other nurseries at a recent trade show in Atlanta. Although Monromio has increased its prices across the board, Monromio's price hike to Homegrown is larger than the average. Barry suspects that Betty Stevenson, Homegrown's assistant manager in charge of purchasing nursery stock, may be accepting kickbacks from Monromio in return for allowing higher purchase prices. Betty and her husband, Mike, purchased a new SUV, a houseboat, and several ATVs last year and moved into a new, larger house this year. Barry knows that Betty's salary isn't high enough to support the new lifestyle, and he doubts that Mike's job as a city employee would provide large enough raises to justify the new "toys." Barry hires you to perform a net worth investigation of Betty and Mike to determine the amount of any unknown income. Your search of public and private records reveals the following information: CASE STUDY 4 YEAR BEFORE LAST LAST YEAR THIS YEAR Ottoo $70,000 $70,000 $200,000 Assets: Personal residence Automobiles Houseboat ATVs 15,000 45,000 30,000 12,000 45,000 30,000 12,000 Liabilities: 35,000 30,500 100,000 2,500 15,000 11,000 26,000 25,500 25,000 Mortgage balance Auto loan Loan on houseboat Income: Betty's salary Mike's salary Expenses: Mortgage payments Auto payments Houseboat 37,000 36,000 35,000 4,500 4,500 13,000 1,800 1,800 2,400 2,400 payments Other living expenses 17,000 15,000 15,000 Question Other living expenses 15,000 17,000 15,000 Question 1. Using this information, calculate the amount of income from unknown sources, if any, using the net worth method. (Ignore interest in your calculations.)Step by Step Solution
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