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ceau/courses? 10973/0 hents/410098?module_item_id=1470535 Part I: Preparing a personal balance sheet. Sadie Richardson's banker has asked her to submit a personal balance sheet as of
ceau/courses? 10973/0 hents/410098?module_item_id=1470535 Part I: Preparing a personal balance sheet. Sadie Richardson's banker has asked her to submit a personal balance sheet as of June 30, 2020, in support of an application for a $6,000 home improvement loan. She comes to you for help in preparing it. So far, she has made the following list of her assets and liabilities as of June 30, 2020: Use Worksheet 2.1 Balance for this assessment to prepare Sadie Richardson's balance sheet, dated June 30, 2020. Also, evaluate her balance sheet relative to the following factors: solvency ratio and liquidity ratio. Competency Assessment Lesson 1.2 Competency Assessment - Lesson 1.2 Cash on hand Balance in checking account Balance in money market deposit account with Southwest Savings Bills outstanding: we/yabus Telephone $70 180 650 $20 module_item_id=14/0535 Electricity 70 Charge account balance 190 Visa MasterCard Taxes Insurance 180 220 400 220 Total bills outstanding Condo and property 68,000 Condo mortgage loan 52,000 Automobile: 2015 Honda Civic 12,000 Installment loan balances: Auto loans 3,000 Furniture loan 500 syllabus 1,300 Lesson 1.2 Mastery Assessment C My Overview | Chegg.com edu/courses/10473/assignments/410098?module_item_id=1470535 Total Installment loan balances Personal property: Furniture Clothing Total personal property Investments: 1,050 900 U.S. government savings bonds 500 Stock of Commodities Corp. 3,000 Total Investment 3,500 1,950 3,500 Lesson 12 Mastery Assessment C My Overview | Chegg.com du/courses/10473/assignments/410098?module_item_id=1470535 Part II: Preparing income and expense statement Use Worksheet 2.2 for this assessment. Ariana and Nicholas Peterson are about to construct their income and expense statement for the year ending December 31, 2020. Nicholas is finishing up college and currently has no income. They have put together the following income and expense information for 2020: Competency Assessment - Lesson 1.2 Ariana's salary $47,000 Reimbursement for travel expenses 1,950 Interest on: Savings account Bonds of Delta Corporation Groceries 110 70 4,150 Rent 9,600 Utilities Gas and auto expenses 960 650 Nicholas' tuition, books, and supplies 3,300 Books, magazines, and periodicals 280 Clothing and other miscellaneous expenses 2,700 Cost of photographic equipment purchased with charge card 2,200 Amount paid to date on photographic equipment 1,600 Ariana's travel expenses 1,950 Purchase of a used car (cost) 9,750 Outstanding loan balance on car 7,300 Purchase of bonds in Delta Corporation 4.900 Using the information provided, prepare an income and expense statement for the Petersons for the year ending December 31, 2020 (follow the form shown in Worksheet 2.2) Part III: Preparing cash budget Landon and Naomi Gray are preparing their cash budget. Help the Grays reconcile the following differences, giving reasons to support your answers. 1. Their only source of income is Landon's salary, which amounts to $5,000 a month before taxes. Landon wants to show the $5,000 as their monthly income, whereas Naomi argues that his take-home pay of $3,917 is the correct value to show. 2. Naomi wants to make a provision for fun money, an idea that Landon cannot understand. He asks, "Why do we need fun money when everything is provided for in the budget?" Part IV: Calculating present and future values Use future or present value techniques to solve the following problems. 1. Starting with $15,000, how much will you have in 10 years if you can earn 6 percent on your money? If you can earn only 4 percent? 2. If the average new home costs $275,000 today, how much will it cost in 10 years if the price increases by 5 percent each year? 3. If you can earn 4 percent, how much will you have to save each year if you want to retire in 35 years with $1 million? BALANCE SHEET Current Liabilities Date S Utilities Rent Worksheet 2.1 Name(s) Liquid Assets Cash on hand In checking Savings accounts Money market funds and deposits Certificates of deposit ( 1 yr. to maturity) Mutual funds Real estate Retirement funds, IRA Other Total Investments Real Property Primary residence Second home Other $ $ S Total Real Property Personal Property Auto(s): 2016 Honda Civic S Auto(s): Recreational vehicles S Insurance premiums Taxes Medical/dental bills Repair bills Bank credit card balances Dept. store credit card balances Travel and entertainment card balances Gas and other credit card balances Bank line of credit balances Other current liabilities Total Current Liabilities Long-Term Liabilities Primary residence mortgage Second home mortrage Real estate investment mortgage Auto loans Appliance/furniture loans Home improvement loans Single-payment loans Education loans Margin loans Other long-term loans LIABILITIES S 5 Household furnishing Jewelry and artwork Other Total Long-Term Liabilities Other Total Personal Property $ (11) Total Liabilities S Net Worth [[)-(1)] $ (1)Total Assets S Total Liabilities and Net Worth S Note the Total Assets must equal the Total Liability and Net Worth, If they are not equal, there is an error. If you need to add an account, unprotect the worksheet [option under the Review command] and overwrite one of the unneeded accounts. 1 Worksheet 2.2 2 3 Name(s) 4 For the month or year) 7 Income 8 Wages and salaries 9 Name: Name Name INCOME AND EXPENSE STATEMENT Ended 10 11 Self-employment income 12 Bonuses and commissions 13 Investment income 14 15 16 17 18 Pensions and annuities 19 Other income Interest received Dividends received Rents received Sale of securities-Gain or Loss Other: Reimbursement of travel expenses D (Total Income S 20 21 Expenses 22 Housing 23 24 25 Utilities 26 27 28 Food 29 30 Transportation 31 32 33 Medical 34 35 36 Clothing 37 Insurance 38 39 40 Taxes 41 42 Appliances, furniture, and other 43 major purchases 44 Personal care 45 Recreation and entertainment 46 47 Other items Rent/mortgage payment (include insurance and taxes, if applicable) Repairs, maintenance, improvements Gas, electric, water Phone Cable TV and other Groceries Dining out Auto loan payments License plates, fees, etc. Gas, oil, repairs, tires, maintenance Health, major medical, disability insurance (payroll deductions or not provided by employer) Doctor, dentist, hospital, medicines Clothes, shoes, and accessories Homeowner's (if not covered by mortgage payment Life (not provided by employer) &/or Long-term Care Auto Income and social security Property (if not included in mortgage) Loan payments Purchases and repairs Laundry, cosmetics, hair care Vacations Other recreation and entertainment Books, tuition, and supplies Photographic equipment amount paid Travel expenses 48 49 50 51 152 53 () Total Expenses $ CASH Net Income (OR DEFICIT) ((4))
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Part I Preparing Sadie Richardsons Personal Balance Sheet As of June 30 2020 First list all the assets and liabilities provided Assets Liquid Assets Cash on hand 70 Balance in checking account 180 Bal...Get Instant Access to Expert-Tailored Solutions
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