Ren$$e is a $28-$year$-$old occupational therapist living in the Annex district of Toronto. She recently graduated from the University of Toronto and now works as an independent contractor assessing the legitimacy of claims made by car accident victims. Like many students, Ren$$e accumulated a large student debt during her years at university and plans to pay it off within the next five years.

Cash Flow Statement For the Year Just Ended

Income

Professional billings $ $61,205$

Less: Professional expenses and taxes $(25,390)$

Professional income net of expenses and taxes $ $35,815$

Dividends $($after taxes$)280$

Total Income $ $36,095$

Fixed Expenses

Rent $11,100$

Student loan payments $4,400$

Total Fixed Expenses $ $15,500$

Variable Expenses

Utilities, personal, food, clothing, and dental $ $14,285$

Moving expenses $375$

Credit card interest $1,160$

Recreation$/$entertainment $2,040$

Vacations $6,350$

Total Variable Expenses $ $24,210$

Total Expenses $ $39,710$

Surplus$/($Deficit$)($$ $3,615)$

Personal Balance Sheet as of Today

Assets

Liquid Assets

Bank account $ $1,690$

Personal Possessions $ $11,780$

Investment Assets

BCE Shares $ $4,525$

Total Assets $ $17,995$

Liabilities

Current Liabilities

Credit card balances $ $9,355$

Long$-$Term Liabilities

Student loan $22,080$

Total Liabilities $ $31,435$

Net Worth $($$ $13,440)$