Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please bold the answers Thomas Green, of Laramie, Wyoming, has been a retail salesclerk for six years. At age 35, he is divorced with one

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

Please bold the answers

Thomas Green, of Laramie, Wyoming, has been a retail salesclerk for six years. At age 35, he is divorced with one child, Amanda, age 7. Thomas' salary is $46,000 per year. He regularly receives $500 per month for child support from Amanda's mother. Thomas invests $100 each month ($50 in his mutual fund and $50 in U.S. savings bonds). ASSETS Amount Vested retirement benefits $ 6,000 5,000 (no employee contribution) Money market account (includes $150 of interest earned last year) Mutual fund (includes $200 of reinvested dividend income from last year) Checking account Personal property Automobile U.S. savings bonds 5,000 1,000 5,000 12,500 3,500 LIABILITIES Outstanding Balance $ Dental bill (pays $25 per month and is included in uninsured medical/dental) Visa (pays $100 per month) Student loan (pays $100 per month) 450 3,500 8,500 ANNUAL FIXED EXPENSES Amount Auto insurance $ 780 Rent 12,000 ANNUAL FIXED EXPENSES Amount Auto insurance $ 780 Rent Uninsured medical/dental Federal income tax Social Security taxes Health insurance 12,000 1,000 5,600 3,500 2,440 Amount ANNUAL VARIABLE EXPENSES $ 480 Dry cleaning Utilities 2,400 iPhone 980 Cable 1,400 Internet 800 3,000 420 2,120 500 Food Personal care Gas, maintenance, license Clothes Entertainment Vacations/visitation/travel Child care Gifts 2,500 3,000 5,080 400 Miscellaneous 300 Using the information above, construct a balance sheet and a cash-flow statement for Thomas. Round monetary values to the nearest dollar and percentage values to two decimal places. Balance Sheet for Thomas Green Dollars Percent $ % % % $ % ASSETS Monetary Assets Checking account Money market account U.S. savings bonds Total Monetary Assets Tangible Assets Personal property Automobile Total Tangible Assets Investment Assets Mutual fund Vested retirement benefits Total Investment Assets $ % % II $ % $ % % $ % TOTAL ASSETS $ % LIABILITIES Short-Term Liabilities Dental bill $ % Visa % $ % Total Short-Term Liabilities Long-Term Liabilities Student loan $ % $ % $ % $ % Student loan Total Long-Term Liabilities TOTAL LIABILITIES NET WORTH TOTAL LIABILITIES AND NET WORTH $ % $ % Cash-Flow Statement for Thomas Green Dollars Percent $ % INCOME Thomas' salary Child support Interest and dividends % % TOTAL INCOME $ % $ % % EXPENDITURES Fixed Expenses Rent Mutual fund U.S. savings bond Health insurance Auto insurance Uninsured medical/dental Taxes % % % % % % Debt payments Total Fixed Expenses $ % Health insurance % % Auto insurance Uninsured medical/dental % Taxes % % $ % Debt payments Total Fixed Expenses Variable Expenses Food $ % Utilities % iPhone % Cable % Internet % % % % % % Gas, maintenance, license Dry cleaning Personal care Child care Clothes Entertainment Vacation/visitation/travel Gifts Miscellaneous Total Variable Expenses TOTAL EXPENSES % % % % $ % III $ % NET GAIN $ %

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

Auditing A Risk Based Approach

Authors: Karla M Johnstone-Zehms, Audrey A. Gramling, Larry E. Rittenberg

12th Edition

035772187X, 978-0357721872

More Books

Students also viewed these Accounting questions

Question

What information is relevant to solve this problem and why?

Answered: 1 week ago

Question

a budget is an example of an informal business plan. true or false

Answered: 1 week ago

Question

Define Management by exception

Answered: 1 week ago

Question

Explain the importance of staffing in business organisations

Answered: 1 week ago

Question

What are the types of forms of communication ?

Answered: 1 week ago