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Instructions: Using the information in the case of Lydia and Ed detailed below, compose an Income Statement and Balance Sheet. A blank income statement and

Instructions:
Using the information in the case of Lydia and Ed detailed below, compose an Income Statement and Balance Sheet. A blank income statement and balance sheet is provided for you to work with, however, you are welcome to compose your own. The goal is to organize the data and determine if there is a surplus or deficit (income statement) and calculate Ed & Lydias net worth (balance sheet).
**Hint, remember to take any annual numbers and divide by 12 to get monthly amounts. Personal finances are usually managed MONTHLY consistent with streams of income.
Read the following story of Ed & Lydia Goodman and then input and organize their financial data.
Ed and Lydia are married just over 10 years and have two young children. Recently, they began to think more deeply about their personal finances and thought it would be wise to organize and budget appropriately.
Ed works as a professor at a Community College earning $102,000 annually. Lydia works in a local school district as an Administrative Assistant earning $42,000 per year. Theyre payroll taxes and benefits withholdings amount to about 40% of their salary. They have $25,000 in the bank earning 1% interest, they currently hold $40,000 in two bonds that generate $175 per month and about $95 per month on dividends in their stock portfolio, which is valued at $25,000. They also have a $150,000 investment in a business property that earns $1000 per month.
They currently own their condo in Flushing with an assessed value of approximately $450,000 but have a mortgage payment of $2483 per month (that includes maintenance charges). They have about $250,000 left on their mortgage. They pay $2900 in real estate taxes annually. They own a Hyundai Santa Fe utility vehicle that they are currently financing at $375 per month. They car is worth about $25,000. Their current balance on the car is $10,000.
As for other expenses, they pay $125 per month for electric and $30 for gas. Their internet and cable is $220 per month. They pay $35 per for Netflix and Disney+ streaming services and $200 per month for their cell phones. They both have gym memberships at $39 per month each. They spend about $500 per month on groceries, $200 per month to dine out usually twice per month with the kids. They fill up the gas thank twice per month which costs about $90 total per month. They spend $1200 per month total on day care for both children. Clothing, shoes, and other child expenses amount to about $400 per month. They also invest in their childrens college savings plan (529 plan) where they save $100 per month for each child.
They have condo insurance that costs $100 per month, car insurance at $175 per month, medical premiums for health insurance come out of their paychecks. Ed has a term life insurance policy of $200,000 which he pays $39 per month in premiums.
In creating a solid spending plan, Ed and Lydia allow for personal expenses monthly of $200 each that they can use to buy clothes for themselves, hang out with friends, etc.
They are carrying an $18,000 balance on their credit card that they are trying to pay off. They have committed to paying $1000 per month until it is paid off and decided not to use any credit cards going forward until they pay it off. Instead, they started building an emergency fund where they put away $100 per month.

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