outstanding. Other than that, they do not spend a great deal of time tracking their finances. o. Calculate their net worth and income surplus. How does their net worth compare to that of other individuals younger than 35 ? c. Calculate and interpret their month's living expenses covered ratio and their debt ratio. d. What other information would be necessary or helpful to develop more complete statements? What financial statements should Rudabeh and Donovan prepare to begin realizing their home purchase goal? (Select the best answer below.) A. They should prepare an income statement, a balance sheet, and a net worth statement. B. They should prepare a balance sheet. Since they know what their net income is, they do not need an income statement. C. They should prepare an income statement and a balance sheet. D. They should prepare an income statement. Since they keep track of their expenses, they do not need a balance sheet. What records should they use to compile these statements? (Select all that apply.) A. Any outstanding I.O.U.S B. 401(k) statement C. Long-term debt payments D. Short-term debt payments E. Fixed living expenses F. Variable living expenses G. Paycheck stub b. Rudabeh and Donovan's net worth is $. (Round to the nearest dollar.) Rudabeh and Donovan's surplus income is $ (Round to the nearest dollar.) Compared to others their age, Rudabeh and Donovan's net worth is: (Select the bes A. below both the average and median net worth. B. above both the average and median net worth. C. above the average net worth, but below the median net worth. D. above the median net worth, but below the average net worth. d. What other information would be necessary or helpful to develop more complete statements? (Select all that apply.) A. A list of personal and financial goals for both Rudabeh and Donovan B. College transcripts C. Past records D. Accurate and recent financial statements E. Birth certificates e. To develop their budget, Rudabeh and Donovan need to follow these steps: (Select all that apply.) A. Locate and examine their most recent annual personal income statement. B. Adapt the budget in accordance with goals through efforts to earn more, spend less, and/or downsize the goals. C. Estimate tax liability. D. Identify and calulate all sources of variable expenses, such as food and entertainment, and identify any areas for possible reduction. E. Identify and calculate all sources of fixed expenses, such as a mortgage or auto loan. F. Compare anticipated monthly savings with target savings levels to achieve financial goals. G. Identify any areas of possible reduction in the fixed expense category. H. Determine amount available for savings. f. Principle 6 would be applicable in this situation because of their limited and knowledge. A could help them plan for the purchase of a home and suggest ways to expenses so that they could g. What recommendations do you have for Rudabeh and Donovan regarding financial communication? (Select all that apply.) A. It is possible that Donovan and Rudabeh are worried about arguments they may start by opening up an honest conversation about money. B. Recommend that they read an article online together about financial communication. C. According to a TD Ameritrade survey, nearly half of all couples feel regret about waiting too long to discuss money. D. Encourage them to open a retirement account at TD Ameritrade. E. Encourage them to pick a happy time to sit down and talk about their financial goals. outstanding. Other than that, they do not spend a great deal of time tracking their finances. o. Calculate their net worth and income surplus. How does their net worth compare to that of other individuals younger than 35 ? c. Calculate and interpret their month's living expenses covered ratio and their debt ratio. d. What other information would be necessary or helpful to develop more complete statements? What financial statements should Rudabeh and Donovan prepare to begin realizing their home purchase goal? (Select the best answer below.) A. They should prepare an income statement, a balance sheet, and a net worth statement. B. They should prepare a balance sheet. Since they know what their net income is, they do not need an income statement. C. They should prepare an income statement and a balance sheet. D. They should prepare an income statement. Since they keep track of their expenses, they do not need a balance sheet. What records should they use to compile these statements? (Select all that apply.) A. Any outstanding I.O.U.S B. 401(k) statement C. Long-term debt payments D. Short-term debt payments E. Fixed living expenses F. Variable living expenses G. Paycheck stub b. Rudabeh and Donovan's net worth is $. (Round to the nearest dollar.) Rudabeh and Donovan's surplus income is $ (Round to the nearest dollar.) Compared to others their age, Rudabeh and Donovan's net worth is: (Select the bes A. below both the average and median net worth. B. above both the average and median net worth. C. above the average net worth, but below the median net worth. D. above the median net worth, but below the average net worth. d. What other information would be necessary or helpful to develop more complete statements? (Select all that apply.) A. A list of personal and financial goals for both Rudabeh and Donovan B. College transcripts C. Past records D. Accurate and recent financial statements E. Birth certificates e. To develop their budget, Rudabeh and Donovan need to follow these steps: (Select all that apply.) A. Locate and examine their most recent annual personal income statement. B. Adapt the budget in accordance with goals through efforts to earn more, spend less, and/or downsize the goals. C. Estimate tax liability. D. Identify and calulate all sources of variable expenses, such as food and entertainment, and identify any areas for possible reduction. E. Identify and calculate all sources of fixed expenses, such as a mortgage or auto loan. F. Compare anticipated monthly savings with target savings levels to achieve financial goals. G. Identify any areas of possible reduction in the fixed expense category. H. Determine amount available for savings. f. Principle 6 would be applicable in this situation because of their limited and knowledge. A could help them plan for the purchase of a home and suggest ways to expenses so that they could g. What recommendations do you have for Rudabeh and Donovan regarding financial communication? (Select all that apply.) A. It is possible that Donovan and Rudabeh are worried about arguments they may start by opening up an honest conversation about money. B. Recommend that they read an article online together about financial communication. C. According to a TD Ameritrade survey, nearly half of all couples feel regret about waiting too long to discuss money. D. Encourage them to open a retirement account at TD Ameritrade. E. Encourage them to pick a happy time to sit down and talk about their financial goals