Steve (Slick) Willy (age 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% 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 that 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 18-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 $1,000 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 doesn’t pay Slick’s company. The man says Slick demands the checks be made out to a woman, not a company.

This complaint convinces you to investigate Mr. Willy and his girlfriend. A search of UCC filings in the county shows that Slick’s girlfriend owns three cars costing $90,000, a $250,000 house, and a company called Tak’In It From You. You check her bank account and see that more than $50,000 is moving through the account each month. You decide to dig through Slick and his girlfriend’s trash a few times each month. In these searches, you find evidence that support the following: three car payments totaling $1,000 per month; a $1,500 monthly mortgage payment; a credit card balance of $6,000, with $100 monthly payments; a balance of $12,000 owed to Home Shopping Network for furniture, with $500 monthly payments; $400 food payments during the past two weeks; and a $3,500 payment to Jamaican cruise lines. After searching the girlfriend’s trash, you talk to her neighbors, friends, and coworkers and determine that she and Slick spend between $1,500 and $2,000 a month on miscellaneous items and trips. One neighbor tells you that Slick just gave his girlfriend a two-carat diamond ring that costs $3,000. Slick’s girlfriend works as a waitress at a small restaurant and makes only $15,000 a year. (Note: Assume that both Slick and his girlfriend’s net worth last year were zero.)

Using the information you found, prepare a net worth analysis of Slick’s girlfriend. (Ignore interest in your calculations.) What information will this tell you about Slick?