Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

NET WORTH ANALYSIS Based on Public Records and other sources we have accumulated information regarding John, as follows: 1. According to the County Assessor of

NET WORTH ANALYSIS

Based on Public Records and other sources we have accumulated information regarding John, as follows:

1. According to the County Assessor of Property, we have identified that Johns residence was valued at $100,000, in 2008, and that the property maintained the same value for subsequent years. The monthly mortgage payment was $500. By the end of 2008, John owed $90,000 and by the end of 2009, he owed $40,000. As of December 2010, the balance was paid off.

2. Research at the County Clerks Office identified that in 2008, John owned a 2006 Toyota. According to the Auto Dealers Black Book the Toyota was valued at $20,000, and John owed $10,000 at year end. Information recovered from his residential trash indicated the auto loan to be $166.66 monthly.

3. In January 2009, John traded in the Toyota, and purchased a used 2008 BMW 399i Coupe, valued at $40,000. Throughout the year, he paid a monthly auto loan of $208.22, and by year end the balance on the loan was paid down to $5,000. In 2010, he paid the same loan payment through the end of the year, and apparently paid additional funds as the loan was paid off by the end of the year. The BMW maintained its value throughout 2010.

4. In January 2010, John purchased a new Lexus 453 Sports Coupe, valued at $50,000. According to the dealership John paid in a Cashiers Check from Bank of America II.

5. It was discovered that John maintained an investment portfolio at Bank of America II, for each of the three years. The value of the account maintained a $30,000 balance each year.

6. In 2009, John purchased a speed boat valued at $30,000 and still owned the boat throughout 2010.

7. John had a certificate of deposit at Bank of America II. It has been learned that the CD was valued at $25,000 in 2008 and 2009, and that by the end of 2010 an additional $25,000 was purchased.

8. Payroll records indicate that John was paid $37,000 in 2008, $40,000 in 2009 and $42,000 in 2010. Additionally, he receives $4,000 yearly from a part-time job.

9. General living expenses for 2008 and 2009 was $15,000 annually and in 2010 increased to $20,000 annually.

FY 2008

FY 2009

FY 2010

Assets

Residence

Automobiles

Investment Portfolio

Boat

Certificates of Deposit

Total Assets

Liabilities

Mortgage

Auto Loans

Total Assets

Income

Salary

Other Income

Total Income

Expenses

Mortgage Payments

Auto Loan Payments

General Living Expenses

Total Expenses

Net Worth =

Change in Net Worth

Plus Total Expenses

Total

Less Known Income

Income from Unknown Sources

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Tools For Business Decision Making

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine, Christopher D. Burnley

8th Canadian Edition

111959457X, 978-1119594574

More Books

Students also viewed these Accounting questions

Question

1. What is the origin of the communication discipline?

Answered: 1 week ago

Question

2. What methods do communication scholars use to conduct research?

Answered: 1 week ago