Please include all calculations in the Excel cells as well.

EXERCISE 1 In this exercise you will perform an analysis of a personal financial statement using ratios. Background In the last chapter, you analyzed the business financial statements of Dry Supply, a wholesaler of dry-cleaning supplies and equipment. Using the personal financial state- ment of Kaitlyn Nieson (on the following pages), one of the owners of Dry Supply, Inc. you will now calculate the key ratios and explain what they reveal. Instructions Using the PFS of Kaitlyn Nieson, calculate the following ratios and explain what they reveal: 1. Liquidity ratio 2. Unsecured debt ratio 3. DTI ratio PERSONAL FINANCIAL STATEMENT AS OF October 10, 20xz Date SUBMITTED TO: Your Bank CO-APPLICANT (NAME) - Employer and Address Business Phone No. Title/Position PERSONAL INFORMATION APPLICANT (NAME) Kaitlyn Nieson Employer and Address Dry Supply, Inc. Salina, KS Business Phone No. No. of Years Title/Position 785-447-0300 with Employer President 20 Home Address 4566 North Lynn Court, Salina, KS Home Phone No Social Security No. Date of Birth 785-445-0236 111-33-4444 09/14/19xz Marital Status: _X_Single_Married Divorced Widowed No. of Years with Employer Home Address Home Phone No. Social Security No. Date of Birth Marital Status: Single Married Divorced Widowed CASH INCOME & EXPENDITURE STATEMENT FOR THE YEAR ENDED 20xy (OMIT CENTS) ANNUAL INCOME Applicant Co-Applicant ANNUAL EXPENDITURES Applicant Co-Applicant Salary 14,000 Mortgage/Rent - Residence 3,600 Bonuses & Commissions All Other Debt Service 6,600 Interest & Dividends 5,000 Federal Income & Other Taxes 8,800 Rental Income (Net of Expenses) 6,000 State Income & Other Taxes 2,200 Partner or Owner Draws/Distributions Insurance (Home, Health, Vehicles) Other Income (List) gifts, trusts 19,000 Other Expenses (List) prop. taxes - (family trust income) residence and investment RE 1,800 Other Living Expenses 5,000 TOTAL INCOME (S) 44,000 TOTAL EXPENDITURES ($) 28,000 BALANCE SHEET AS OF Sept. 30, 20xz ASSETS AMOUNT (S) LIABILITIES AMOUNT (S) Cash* in This Bank 30,000 Notes Payable to Banks - Secured (Schedule E) Cash* in Other Financial Institutions 20,000 Notes Payable to Banks - Unsecured (Schedule E) Readily Marketable Securities (Schedule A) 150,000 Notes Payable to Others - Secured (Schedule E) Non-Readily Marketable Securities (Schedule A) 100,000 Notes Payable to Others - Unsecured (Schedule E) Accounts and Notes Receivable Accounts Payable (including credit cards) 1,000 Cash Surrender Value of Life Ins. (Schedule B) Margin Accounts Residential Real Estate (Schedule C) 150,000 Notes Due: Partnerships/Other Entities (Schedule D) Real Estate Investments (Schedule C) 75,000 Mortgage Debt (Schedule C) 74,000 Partnerships/LLCS/S Corporations (Schedule D) Loans on Life Insurance Policies (Schedule B) Personal Property (Including Automobiles) 30,000 Taxes Payable IRAs, Keoghs and Other Qualified Plans Other Liabilities (List) Sole Proprietorship Assets: con TOTAL LIABILITIES (S) 75,000 oprietors! Accounts Receivable Estimated Tax Liability If All Major Assets Sold 25,000 SUBTOTAL (S) 100,000 Fixed Assets NET WORTH (S) 455,000 Other Assets (List) TOTAL ASSETS ($) 555,000 TOTAL LIABS. & NET WORTH (S) 555,000 Including money market accounts and CDs. Inventory NO YES AMOUNT (S) 250,000 CONTINGENT LIABILTIES (Must be Completed; If None. Then Write "None" Below Are you a guarantor, co-maker, or endorser for any debt of an individual, corporation or partnership? Do you have any outstanding letters of credit or surety bonds? Are there or any lawsuits or legal actions pending against you? Are you contingently liable on any lease or contract? Are any of your tax obligations past due? Are you obligated to pay alimony and/or child support? Other contingent liabilities (describe): X YES OTHER QUESTIONS Have you, or any firm in which you were a major owner, ever filed a petition in bankruptcy or has one been filed individually against you? If yes, please provide details below: NO Are you an executive officer, director or principal shareholder of a bank? Bank: SCHEDULE AALL SECURITIES (Including Non-Money Market Mutual Funds)* # of Shares (Stock) or Face Value (Bonds) Description Owner(s) Where Held Cost READILY MARKETABLE SECURITIES (Including US Government And Municipals) 1,500 shares Giant Public Co. Kaitlyn Nieson brokerage $30,000 Current Market Value PLEDGED YES NO $ 150,000 NON-READILY MARKETABLE SECURITIES (Closely Held Businesses, Thinly Traded or Restricted Stocks)* 1,000 shares Dry Supply, Inc. Kaitlyn Nieson safe dep. box $500 $100,000 If not enough space, attach a separate schedule or brokerage statement and enter totals only. SCHEDULE B-LIFE INSURANCE (Use Additional Sheets If Necessary) Insurance Company Face Amount Type of Policy Beneficiary Cash Surrender Value Big Life Company 250,000 term Dry Supply n/a Amount Borrowed n/a Ownership Kaitlyn Nieson Applicant Co-Applicant Disability Insurance Monthly Distribution if Disabled Number of Years Covered SCHEDULE C-PERSONAL RESIDENCE & REAL ESTATE INVESTMENTS, MORTGAGE DEBT Personal Residence Legal Purchase Market Present Loan Interest Maturity Monthly Address Owner Year Price Value Bal! Rate Date Payment 4566 N. Lynn Ct. KN 19x3 40,000 150,000 24,000 6% 20yz 300 Lender Your Bank Investment Property Address Florida Condo Legal Owner KN Purchase Year Price 19x9 60,000 Market Value 75,000 Present Loan Bal. 50,000 Interest Rate Maturity Monthly Date Payment 20yx 550 Lender Other Bank 8% SCHEDULE D-PARTNERSHIPS/LLCS/S CORPORATIONS (less than majority ownership for real estate partnerships)* Date of Initial Cost or Initial % Current Market Bal. Due on Partnerships: Current Year Type of Investment Investment Investment Owned Value Notes or Cash Calls Investments Business/Professional indicate name) Investments (including tax shelters) Note: For investments listed above that represent a material portion of your total assets, please include financial statements or tax returns of the entities, plus any Schedule K-Is provided to you. SCHEDULE E NOTES PAYABLE Maximum Type of Facility Amount of Facility Secured Yes No Interest Rate Due To Collateral Maturity Unpaid Balance ** Immediately above the signature blocks, most banks place a paragraph of text called representations and warranties. This information differs from bank to bank and from state to state, depending on state laws and other issues. You are encouraged to read and to understand your bank's particular wording that is used. ** Kaitlyn Nieson___ Applicant Signature Od 10, 20x3 Date Co-Applicant Signature Date A Personal Financial Statement of Kaitly Nieson, 20xz Assets: Liabilities: Cash Credit cards Marketable securities Auto debt 401(k) Other personal property debt Receivabe due closely held company Residence mortgage Due from others Real Estate investment mortgage Home/residence Other long-term debt Real Estate Investment Value of privately held company Total Liabilities Cash Value of Life Insurance Est. Tax Liab. If major assets sold Personal property (inlcuding Auto) Subtotal Net Worth: Total Assets: Total Liabilities and Net Worth Stated Net worth Less: value of closely held business Outside Net Worth Adjustments Notes Receivable Value of Personal Property Taxes/Penalties on ret withdrawl Contingent Liability Total Adjustments Adjusted Net Worth Liquid Assets Liquidity ratio Total Assets Unsecured debt ratio Unsecured Notes Payable Annual Income DTI ratio Monthly Debt Service Monthly Gross Income EXERCISE 1 In this exercise you will perform an analysis of a personal financial statement using ratios. Background In the last chapter, you analyzed the business financial statements of Dry Supply, a wholesaler of dry-cleaning supplies and equipment. Using the personal financial state- ment of Kaitlyn Nieson (on the following pages), one of the owners of Dry Supply, Inc. you will now calculate the key ratios and explain what they reveal. Instructions Using the PFS of Kaitlyn Nieson, calculate the following ratios and explain what they reveal: 1. Liquidity ratio 2. Unsecured debt ratio 3. DTI ratio PERSONAL FINANCIAL STATEMENT AS OF October 10, 20xz Date SUBMITTED TO: Your Bank CO-APPLICANT (NAME) - Employer and Address Business Phone No. Title/Position PERSONAL INFORMATION APPLICANT (NAME) Kaitlyn Nieson Employer and Address Dry Supply, Inc. Salina, KS Business Phone No. No. of Years Title/Position 785-447-0300 with Employer President 20 Home Address 4566 North Lynn Court, Salina, KS Home Phone No Social Security No. Date of Birth 785-445-0236 111-33-4444 09/14/19xz Marital Status: _X_Single_Married Divorced Widowed No. of Years with Employer Home Address Home Phone No. Social Security No. Date of Birth Marital Status: Single Married Divorced Widowed CASH INCOME & EXPENDITURE STATEMENT FOR THE YEAR ENDED 20xy (OMIT CENTS) ANNUAL INCOME Applicant Co-Applicant ANNUAL EXPENDITURES Applicant Co-Applicant Salary 14,000 Mortgage/Rent - Residence 3,600 Bonuses & Commissions All Other Debt Service 6,600 Interest & Dividends 5,000 Federal Income & Other Taxes 8,800 Rental Income (Net of Expenses) 6,000 State Income & Other Taxes 2,200 Partner or Owner Draws/Distributions Insurance (Home, Health, Vehicles) Other Income (List) gifts, trusts 19,000 Other Expenses (List) prop. taxes - (family trust income) residence and investment RE 1,800 Other Living Expenses 5,000 TOTAL INCOME (S) 44,000 TOTAL EXPENDITURES ($) 28,000 BALANCE SHEET AS OF Sept. 30, 20xz ASSETS AMOUNT (S) LIABILITIES AMOUNT (S) Cash* in This Bank 30,000 Notes Payable to Banks - Secured (Schedule E) Cash* in Other Financial Institutions 20,000 Notes Payable to Banks - Unsecured (Schedule E) Readily Marketable Securities (Schedule A) 150,000 Notes Payable to Others - Secured (Schedule E) Non-Readily Marketable Securities (Schedule A) 100,000 Notes Payable to Others - Unsecured (Schedule E) Accounts and Notes Receivable Accounts Payable (including credit cards) 1,000 Cash Surrender Value of Life Ins. (Schedule B) Margin Accounts Residential Real Estate (Schedule C) 150,000 Notes Due: Partnerships/Other Entities (Schedule D) Real Estate Investments (Schedule C) 75,000 Mortgage Debt (Schedule C) 74,000 Partnerships/LLCS/S Corporations (Schedule D) Loans on Life Insurance Policies (Schedule B) Personal Property (Including Automobiles) 30,000 Taxes Payable IRAs, Keoghs and Other Qualified Plans Other Liabilities (List) Sole Proprietorship Assets: con TOTAL LIABILITIES (S) 75,000 oprietors! Accounts Receivable Estimated Tax Liability If All Major Assets Sold 25,000 SUBTOTAL (S) 100,000 Fixed Assets NET WORTH (S) 455,000 Other Assets (List) TOTAL ASSETS ($) 555,000 TOTAL LIABS. & NET WORTH (S) 555,000 Including money market accounts and CDs. Inventory NO YES AMOUNT (S) 250,000 CONTINGENT LIABILTIES (Must be Completed; If None. Then Write "None" Below Are you a guarantor, co-maker, or endorser for any debt of an individual, corporation or partnership? Do you have any outstanding letters of credit or surety bonds? Are there or any lawsuits or legal actions pending against you? Are you contingently liable on any lease or contract? Are any of your tax obligations past due? Are you obligated to pay alimony and/or child support? Other contingent liabilities (describe): X YES OTHER QUESTIONS Have you, or any firm in which you were a major owner, ever filed a petition in bankruptcy or has one been filed individually against you? If yes, please provide details below: NO Are you an executive officer, director or principal shareholder of a bank? Bank: SCHEDULE AALL SECURITIES (Including Non-Money Market Mutual Funds)* # of Shares (Stock) or Face Value (Bonds) Description Owner(s) Where Held Cost READILY MARKETABLE SECURITIES (Including US Government And Municipals) 1,500 shares Giant Public Co. Kaitlyn Nieson brokerage $30,000 Current Market Value PLEDGED YES NO $ 150,000 NON-READILY MARKETABLE SECURITIES (Closely Held Businesses, Thinly Traded or Restricted Stocks)* 1,000 shares Dry Supply, Inc. Kaitlyn Nieson safe dep. box $500 $100,000 If not enough space, attach a separate schedule or brokerage statement and enter totals only. SCHEDULE B-LIFE INSURANCE (Use Additional Sheets If Necessary) Insurance Company Face Amount Type of Policy Beneficiary Cash Surrender Value Big Life Company 250,000 term Dry Supply n/a Amount Borrowed n/a Ownership Kaitlyn Nieson Applicant Co-Applicant Disability Insurance Monthly Distribution if Disabled Number of Years Covered SCHEDULE C-PERSONAL RESIDENCE & REAL ESTATE INVESTMENTS, MORTGAGE DEBT Personal Residence Legal Purchase Market Present Loan Interest Maturity Monthly Address Owner Year Price Value Bal! Rate Date Payment 4566 N. Lynn Ct. KN 19x3 40,000 150,000 24,000 6% 20yz 300 Lender Your Bank Investment Property Address Florida Condo Legal Owner KN Purchase Year Price 19x9 60,000 Market Value 75,000 Present Loan Bal. 50,000 Interest Rate Maturity Monthly Date Payment 20yx 550 Lender Other Bank 8% SCHEDULE D-PARTNERSHIPS/LLCS/S CORPORATIONS (less than majority ownership for real estate partnerships)* Date of Initial Cost or Initial % Current Market Bal. Due on Partnerships: Current Year Type of Investment Investment Investment Owned Value Notes or Cash Calls Investments Business/Professional indicate name) Investments (including tax shelters) Note: For investments listed above that represent a material portion of your total assets, please include financial statements or tax returns of the entities, plus any Schedule K-Is provided to you. SCHEDULE E NOTES PAYABLE Maximum Type of Facility Amount of Facility Secured Yes No Interest Rate Due To Collateral Maturity Unpaid Balance ** Immediately above the signature blocks, most banks place a paragraph of text called representations and warranties. This information differs from bank to bank and from state to state, depending on state laws and other issues. You are encouraged to read and to understand your bank's particular wording that is used. ** Kaitlyn Nieson___ Applicant Signature Od 10, 20x3 Date Co-Applicant Signature Date A Personal Financial Statement of Kaitly Nieson, 20xz Assets: Liabilities: Cash Credit cards Marketable securities Auto debt 401(k) Other personal property debt Receivabe due closely held company Residence mortgage Due from others Real Estate investment mortgage Home/residence Other long-term debt Real Estate Investment Value of privately held company Total Liabilities Cash Value of Life Insurance Est. Tax Liab. If major assets sold Personal property (inlcuding Auto) Subtotal Net Worth: Total Assets: Total Liabilities and Net Worth Stated Net worth Less: value of closely held business Outside Net Worth Adjustments Notes Receivable Value of Personal Property Taxes/Penalties on ret withdrawl Contingent Liability Total Adjustments Adjusted Net Worth Liquid Assets Liquidity ratio Total Assets Unsecured debt ratio Unsecured Notes Payable Annual Income DTI ratio Monthly Debt Service Monthly Gross Income