Max 45, just got out of jail. As a reformed citizen on parole, Max decides to go into business for himself. He starts a collections company to help companies collect debts. The terms of his parole stipulate that he pay restitution payments to the federal government of $400 a month, or 10 percent of his income, whichever is greater. As his parole officer, you notice that after a year out of jail, Slick makes some interesting purchases. First, he buys a new Jaguar, which he drives to parole meetings.

Second, he moves into an expensive neighborhood on the north side of town and takes a cruise to Bahamas with his 19-year-old girlfriend. Yet, he has never been late making his $400 monthly payments to the federal government. After obtaining a subpoena for his bank records, you notice that he has only $1,000 in his account. About this time, you receive a call from a man who is making payments to Maxs collection company. He states that Max is threatening to break his legs and hurt his family if he doesnt pay Max's company. The man says Max demands the checks be made out to a woman, not a company.

This complaint convinces you to investigate Max and his girlfriend. A search of UCC filings in the county shows that Maxs girlfriend owns three cars costing a total of $85,000, a $360,000 house, and a company called Here for U". You check her bank account and see that more than $45,000 is moving through the account each month. You decide to dig through Max and his girlfriends trash a few times each month. In these searches, you find evidence that supports the following: three car payments totaling $2,000 per month; a $2,600 monthly mortgage payment; a credit card balance of $6,500, with $200 monthly payments; a balance of $13,500 owed to Home Shopping Network, with $600 monthly payments; $350 food payments during the past two weeks; and a $3,650 payment to Bahamas Cruise Lines. After searching the girlfriends trash, you talk to her neighbors, friends, and co-workers and determine that she and Max spend between $1,500 and $2,500 a month on miscellaneous items and trips. One neighbor tells you that max just gave his girlfriend a diamond ring that cost $4,500. Maxs girlfriend works as a waitress at a small restaurant and makes only $16,500 a year. (Note: Assume that both Max and his girlfriends net worth last year were zero.)

Question: Use this information to prepare a net worth analysis of Max's girlfriend. (Ignore interest in your calculations.)