Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please label the assets, liabilites, and expenses for slicks girlfriend and solve for the networth analysis. Steve (Slick) Willy, 45, just got out of jail.

please label the assets, liabilites, and expenses for slicks girlfriend and solve for the networth analysis.
image text in transcribed
Steve (Slick) Willy, 45, just got out of jail. As a reformed citizen on parole, Slick decides to go into business for himself, He starts a collections company to help companies collect debts, The terms of his parole stipulate that he pay restitution payments to the federal government of $400 a month, or 10 percent of his income, whichever is greater. As his parole officer, you notice that after a year out of jail, Slick makes some interesting purchases. First, he buys a new jaguar, which he drives to parole meetings. Second, he moves into an expensive neighborhood on the north side of town and takes a cruise to Jamaica with his 19 -year-old girlfriend. Yet, he has never been late making his $400 monthly payments to the federal government. After obtaining a subpoena for his bank records, you notice that he has only 51,000 in his account. About this time, you receive a call from a man who is making payments to slick's collection company. He states that Slick is threatening to break his legs and hurt his family if he doesti pay Slick's compary. The man says Slick demands the checks be made out to a woman, not a company. This complaint comvinces you to imvestigate Mr. Willy and his gimifriend. A seareh of ucC filings in the county shows that Slick's girifriend owns three cars costing a total of \$85,000, a $360,000 house, and a company called Tak't from You. You check her bank account and see that more than 545,000 is moving through the account each month. You decide to dig through slick and his girffriend's trash a few times each month. In these searches, you find evidence that supports the following three car payments totaling $2,000 per month; a $2,600 monthly mortgage payment; a credit card balance of $6,500, with $200 monthly payments; a balance of $13,500 owed to Home Shopping Network, with $600 monthly payments; $350 food payments during the past two weeiks, and a $3,650 payment to jamaican Cruise Lines. After searching the girifriend's trash, you takk to her neighbors, friends, and co-workers and determine that she and Slick spend between $1,500 arid $2,500 a month on miscellaneous items and trips. One neighbor tells you that Slick just gave his girifriend a diamond ring that cost $4,500. 5lick's girifriend works as a waitress at a small restaurant and makes only si 6 soo a year. Wote: Assume that both Slick and his girifriend's net worth last year were zero.) Quesvon: Use this information to prepare a net worth analysis of Slick's ginlfiend. (ignore interest in your calculations)

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_2

Step: 3

blur-text-image_3

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

Audit Risk Alert Employee Benefit Plans Industry Developments 2017

Authors: AICPA

1st Edition

1945498722, 978-1945498725

More Books

Students also viewed these Accounting questions