Prepare a personal balance sheet as of the start of the semester and an income statement representing a one month period starting at the start of the semester. (Income used is $60,000 a year)

Part B:

Calculate the following ratios, showing all of your work:

Current ratio

Months living expenses covered ratio ($2000)

Debt ratio (debt owed $60,000)

Long-term debt coverage ratio

Savings ratio

Part C:

Setting financial goals is the foundation in creating a financial plan. Financial goals must be SMART (Specific, Measurable, Action-oriented, Realistic, Timely). All the money you earn and each type of account you hold should have a purpose.

How much do you need to save to achieve each of the goals you set out and how do you plan on reaching that goal? (i.e Assuming a 2% return on my money, to achieve goal 1 I will need to save $50 bi-weekly for 5 years) **Use reasonable rates of return based on your time horizon and identify how you determined the rate of return to use**

Which type of account (i.e RRSP, TFSA, Cash account, etc.) do you think would serve you best to achieve this goal? Why did you choose this type of account?