Make any new or different recommendation for Burke's Financial Plan?

ww RAID STATEMENT OF FINANCIAL POSITION 6 6 Balance December 31 52.2013 ASSETS Setacolo Mr and Ms. Burke Projecte Balance Sheet End of 2017 LIABILITIES AND NET WORTH Carrab Cedit Card Bowie 10 54.320 56.RS $9.757 9.625 Cadw Cash Equivalen 59.628 INCLUDING TAX alarar And Toal Gue ita Long-Term Les Sulti Loan Auto Loan - My O... Shares ba100 Sur) HD Mald 30 SO 50 $2.500 $13.020 $8,065 $2.033 0.489 56 Total Long-Term Liabile 997341 $25,618 MOND la Aus the A Mary rate Total Liabilities Total Net Worth 535414 -42) and theit ately $7.755 - John Peperty & Familie Talalle Anet Til Art $18.500 $12,000 50 $25.000 $55,500 590746 Total Liabilities & Neth Atsd a fair marker value. stated at principal only of December 31, 2017 belony The interest rate on the student loan is 73842 for 10 years in Beglazing cash of $3,000 plus $7.628 le $1.000 equals 89.628. Ser Bukalapak 5. Ser Satement of Income ergency fund 90.45 and saving ations 300 160) 560) 580 00 00 80 5 SCHEDULE E-RECONCILIATION OF YEAR-END NET WORTH Change in Projected Net Worth January 1, 2017 - December 31, 2017 Beginning Net Worth $10,475 Home Savings Growth $2,500 Emergency Fund Growth $0 Debt Reduction (student loan) $3.813 Debt Reduction (automobile loan) $3.191 Growth of John's Mutual Fund $1,020 Growth of Johns 401(k) Plan $3.745 Growth of Marys 401(k) Plan $2,033 Cash from Cash Flow Analysis Total Ending Net Worth 5 $6,628 $33,405 PROJECTED FINANCIAL STATEMENTS AND RATIOS 255 PROJECTED STATEMENT OF INCOME AND EXPENSES PROJEC SCHEDULE 566.547 En H 1 56368 Statement of Income and Expenses Mr. and Mrs. Burke Statement of Income and Expenses for Past Year and Expected (Approximate) For 2018 CASH INFLOWS Salaries John's Salary $37,440 Mary's Salary $27.040 Variable Annuity Income $2.067 Total Cash Inflows CASH OUTFLOWS Savings Savings - House down payment $2.500 401(k) Man Contribution - John $2.246 40100 Man Contribution - Mary*** $1,622 Total Saving Fixed Outflows Child Support Court Rd. Insurance S4.800 ND Rent $8.400 ND HO 4 Renters Insurance $718 ND Utilities $742 ND Telephone $360 ND Auto payment & $3.600 ND Auto Insurance $4.000 ND Gas, Oil, Maintenance for Auto 52.472 ND Student Loan Payments $7.695 ND Insurance (Life, Disability, PLUP) $1,425 ND Fee for Fates Documents $1,000 Credit Card Payments $1,000 ND Tocal Fixed Outlaws Variable Outflows Tuxes - John and Mary FICA $4.933 Taxes - Federal Tex Withheld" $5.052 Food $3.708 ND Clothing $1.000 ND Vacations $1.500 Total Variable Outflows Total Cash Outlows SUN A sign trip end on $36,212 $16,193 $58,773 $7,774 NET DISCRETIONARY CASH FLOWS ** 71.000 arby increase for in Simon 04.05 256 CHAPTER 6: JOM & MARY BURKE CASE AND CASE ANALYSIS shopie 6 PROJECTED SELECTED RATIOS SCHEDULE F - PROJECTED RATIOS End of Year 1 Projected Ratios December 31, 2017 Beginning of Year 1 End of Year 1 Current Ratio 0.21 m 1 N/A no CL Emergency Fund Ratio 0.91 to 1 HRI 14.14% HR 2 36,84 33.21% Net Worth / Total Assets 11.799 36.81% Savings Rate 6.5% 12.1596 Investment Assets / Gross Pay 0.4947 0.4516x Denominator is based on beginning of year total **The reason the end of year I investment aucta to grow pay ratio in down from 0.4947 00 0.4516x is because the dient sold the two stocks to pay off the credit card debt. This was a strategic dece of the dient. If the $12.000 decision represented were added to the year cod investment to you pay natin it would be 0.6376 ..o the Burkesan making good progres SUMMARY Asuming the Burkes follow and implement all of the recommendations, they will have significantly increased their emergency fund ratio, reduced both housing ratios 1 and 2, almost tripled their net worth, and increased their savings rate from 6.5 percent to 12.15 percent at the end of the first year. These are remarkable results to accomplish in one year. If the Burkes continue on the plan, they will meet their financial goals as they come due. ww RAID STATEMENT OF FINANCIAL POSITION 6 6 Balance December 31 52.2013 ASSETS Setacolo Mr and Ms. Burke Projecte Balance Sheet End of 2017 LIABILITIES AND NET WORTH Carrab Cedit Card Bowie 10 54.320 56.RS $9.757 9.625 Cadw Cash Equivalen 59.628 INCLUDING TAX alarar And Toal Gue ita Long-Term Les Sulti Loan Auto Loan - My O... Shares ba100 Sur) HD Mald 30 SO 50 $2.500 $13.020 $8,065 $2.033 0.489 56 Total Long-Term Liabile 997341 $25,618 MOND la Aus the A Mary rate Total Liabilities Total Net Worth 535414 -42) and theit ately $7.755 - John Peperty & Familie Talalle Anet Til Art $18.500 $12,000 50 $25.000 $55,500 590746 Total Liabilities & Neth Atsd a fair marker value. stated at principal only of December 31, 2017 belony The interest rate on the student loan is 73842 for 10 years in Beglazing cash of $3,000 plus $7.628 le $1.000 equals 89.628. Ser Bukalapak 5. Ser Satement of Income ergency fund 90.45 and saving ations 300 160) 560) 580 00 00 80 5 SCHEDULE E-RECONCILIATION OF YEAR-END NET WORTH Change in Projected Net Worth January 1, 2017 - December 31, 2017 Beginning Net Worth $10,475 Home Savings Growth $2,500 Emergency Fund Growth $0 Debt Reduction (student loan) $3.813 Debt Reduction (automobile loan) $3.191 Growth of John's Mutual Fund $1,020 Growth of Johns 401(k) Plan $3.745 Growth of Marys 401(k) Plan $2,033 Cash from Cash Flow Analysis Total Ending Net Worth 5 $6,628 $33,405 PROJECTED FINANCIAL STATEMENTS AND RATIOS 255 PROJECTED STATEMENT OF INCOME AND EXPENSES PROJEC SCHEDULE 566.547 En H 1 56368 Statement of Income and Expenses Mr. and Mrs. Burke Statement of Income and Expenses for Past Year and Expected (Approximate) For 2018 CASH INFLOWS Salaries John's Salary $37,440 Mary's Salary $27.040 Variable Annuity Income $2.067 Total Cash Inflows CASH OUTFLOWS Savings Savings - House down payment $2.500 401(k) Man Contribution - John $2.246 40100 Man Contribution - Mary*** $1,622 Total Saving Fixed Outflows Child Support Court Rd. Insurance S4.800 ND Rent $8.400 ND HO 4 Renters Insurance $718 ND Utilities $742 ND Telephone $360 ND Auto payment & $3.600 ND Auto Insurance $4.000 ND Gas, Oil, Maintenance for Auto 52.472 ND Student Loan Payments $7.695 ND Insurance (Life, Disability, PLUP) $1,425 ND Fee for Fates Documents $1,000 Credit Card Payments $1,000 ND Tocal Fixed Outlaws Variable Outflows Tuxes - John and Mary FICA $4.933 Taxes - Federal Tex Withheld" $5.052 Food $3.708 ND Clothing $1.000 ND Vacations $1.500 Total Variable Outflows Total Cash Outlows SUN A sign trip end on $36,212 $16,193 $58,773 $7,774 NET DISCRETIONARY CASH FLOWS ** 71.000 arby increase for in Simon 04.05 256 CHAPTER 6: JOM & MARY BURKE CASE AND CASE ANALYSIS shopie 6 PROJECTED SELECTED RATIOS SCHEDULE F - PROJECTED RATIOS End of Year 1 Projected Ratios December 31, 2017 Beginning of Year 1 End of Year 1 Current Ratio 0.21 m 1 N/A no CL Emergency Fund Ratio 0.91 to 1 HRI 14.14% HR 2 36,84 33.21% Net Worth / Total Assets 11.799 36.81% Savings Rate 6.5% 12.1596 Investment Assets / Gross Pay 0.4947 0.4516x Denominator is based on beginning of year total **The reason the end of year I investment aucta to grow pay ratio in down from 0.4947 00 0.4516x is because the dient sold the two stocks to pay off the credit card debt. This was a strategic dece of the dient. If the $12.000 decision represented were added to the year cod investment to you pay natin it would be 0.6376 ..o the Burkesan making good progres SUMMARY Asuming the Burkes follow and implement all of the recommendations, they will have significantly increased their emergency fund ratio, reduced both housing ratios 1 and 2, almost tripled their net worth, and increased their savings rate from 6.5 percent to 12.15 percent at the end of the first year. These are remarkable results to accomplish in one year. If the Burkes continue on the plan, they will meet their financial goals as they come due