Section 8: Analyzing Personal Financial Statements and Tax Returns 1. Identify the basis for reporting personal financial statement data APFS 1. A customer submitted a personal financial statement when requesting a new, unsecured personal loan. In addition to the information below, a lien search reports an unpaid federal tax lien of $20,000. Detail in the personal financial statement shows that the residence was purchased two month ago for $820,000. What would the customer's adjusted net worth be? ASSETS Cash Money Market Accounts Personal Residence Personal Property LIABILITIES 400 Mortgage Debt 600,000 600 820,000 Total Liabilities Notes& Bills Payable 700,000 Net Worth TOTAL ASSETS 1,021,000 TOTAL LIAB& NET WORTH 1,021,000 A) $321,000 B) $301,000 C) $121,000 D) $101,000 2. Identify guidelines for adjusting net worth APFS 2 The basis for reporting assets on personal financial statements is a) Historical cost. b) Current fair market value. c) Taxable basis. d) Amortized cost 3identify key content in tax forms relevant to credit and cash fow analysis APFS3A. Cash flow from items reported on page 1 of the Form 1040 includes which of the following? a) Partnership income. b) Eepital Tosses. c) Net operating losses. d) Unemployment compensation