Jack and Dianne have been struggling to get their finances under control. They never seem to have enough money to cover all their expenses. When you met with them last month, you asked them to track their spending over the next month. They have sent you the following information. Item Amount Classification (A, L, I, E) Mortgage Payment $2,400 Jacks gross income $4,000 Diannes gross income $6,000 Electronics $5,000 Cars $20,000 Jacks RRSP Portfolio $221,000 Diannes TFSA high interest savings acc. $62,000 House $600,000 Property tax $500 Utilities $1,200 Jacks income tax $580 Diannes Income tax $1,100 Food $700 Entertainment $1,000 RRSP Contribution Jack $400 Line of Credit balance $21,000 Clothing purchases $300 Credit Card balance $12,000 Vacation savings Diannes TFSA $500 Line of Credit payment $420 Credit Card payment $240 Donations $200 Mortgage Balance $310,000 Chequing account $2,000

Requirements:

1. Indicate beside the items listed above, whether they are an asset, liability, inflow, or expense.

2. Prepare Jack and Diannes Net worth Statement using proper format.

3.Prepare Jack and Diannes Cash Flow statement using proper format. Hint: You will need to calculate their CPP and EI contributions.