Question
Paula Sanchez is trying to determine her 2019 finances. Paula's actual 2018 finances were as follows: Income: Assets: Gross income $ 65,800 Checking account $
Paula Sanchez is trying to determine her 2019 finances. Paula's actual 2018 finances were as follows:
Income: | Assets: | |||||
Gross income | $ | 65,800 | Checking account | $ | 1,950 | |
Interest income | 410 | Savings account | 9,090 | |||
Total | $ | 66,210 | Automobile | 1,600 | ||
Personal property | 14,800 | |||||
Expenses: | Total | $ | 27,440 | |||
Living | $ | 24,800 | Liabilities: | |||
Insurance premium | 360 | Note to bank | 4,900 | |||
Taxes | 14,500 | Net worth | $ | 22,540 | ($27,440 $4,900) | |
Medical | 540 | |||||
Investment | 4,100 | |||||
Total | $ | 44,300 | ||||
Net worth = Assets Liabilities (own) (owe) Paula believes her gross income will double in 2019 but her interest income will decrease $145. She plans to reduce her 2019 living expenses by one-fourth. Paulas insurance company wrote a letter announcing that her insurance premiums would double in 2019. Her accountant estimates her taxes will decrease $240 and her medical costs will increase $405. Paula also hopes to cut her investments expenses by one-fourth. Paulas accountant projects that her savings and checking accounts will each triple in value. On January 2, 2019, Paula sold her automobile and began to use public transportation. Paula forecasts that her personal property will decrease by one-eigth. She has sent her bank a $375 check to reduce her bank note. a. Could you give Paula an updated list of her 2019 finances?
b. If you round all the way each 2018 and 2019 asset and liability, what will be the difference in Paulas net worth?
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