Part A: Personal financial statements, personal budgets and plans Consider the information presented in the Assessment 1 Mini Case, as well as the following additional information. For the purposes of developing the personal financial statements (balance sheet and income and expense), and for this component of the assessment only, you may assume that Francescas tax, HELP debt and Medicare levy liabilities for the 20182019 financial year equal $33,825 (note that this is not the true figure). You should assume, when considering your calculations, the following about budget surpluses (deficits). Any budget surplus (if present) will be placed into a deposit account paying interest of 0.15 per cent per year. Any budget deficit (if present) has already used up the deposit account and is reflected in the endofyear credit card debit balance on which interest is charged at a rate of 21 per cent per year. Future year cash surpluses and positive deposit account balances in 20182019 will be used to pay down the credit card balance in 20192020.

Required: 1. Prepare personal financial statements (balance sheet and income and expense) for Francesca for the 20182019 financial year. 2. Use the information for Francesca developed in 1. to estimate Francescas: net worth ratio; liquidity ratio; savings ratio; and debt service ratio. Comment briefly on the state of Francescas current financial position. As a result of a state government pay offer, Francesca believes that she will earn an additional $2,305 in the 20192020 financial year. For the purposes of developing the personal financial budget for Francesca, and for this component of the assessment only, you may assume that Francescas tax and Medicare levy liabilities for the 20192020 financial year equal $29,500 (note that this is not the true figure). Assume that Francescas health insurance, council rates, electricity charges, and water charges will all increase by an average 4.5 per cent next year, and that all other expenses, etc., remain unchanged.

Required: 3. Develop a personal financial budget for Francesca for the 20192020 financial year. Show all workings and state any assumptions that you have made in developing your estimates and responses.