Sylvia comes to you for advice in organizing her financial affairs. She is 29 years old and makes $50,000 per year, 30% of which goes to payroll deductions and taxes. Sylvia also receives interest of $400 per year from miscellaneous investments and savings accounts.

Sylvia has tracked her expenses for the last six months and provides you with the following estimates for the year:

Mortgage payments, including property taxes and interest	$5,886 ($3,094 is interest)
Groceries	$3,600
Holidays	$3,500
Car payments, including interest	$4778 ($958 is interest)
Utilities	$3,000
House and car insurance	$1,600
Gas for auto	$2,200
Auto maintenance	$600
Life and disability insurance premiums	$400
House maintenance	$1,500
Household expenses	$600
Medical and dental expenses	$400
Entertainment and lunches	$5,500
Gifts	$1,400
Clothing	$3,400
Miscellaneous expenses	$3,200

Sylvia has the following assets:

House value	$100,000
Cash in the bank	$1,800
CSBs	$8,000
Furnishings and personal assets	$18,000
Auto	$20,000
RRSP	$28,500

Sylvia has the following debt:

Credit card balances owing	$2,800
Line of credit owing	$5,000
Mortgage	$62,000
Car loan	$18,500

Required:

Based on the information provided, prepare a net worth statement and an annual cash flow statement for Sylvia. (10 marks)

Sylvia also has plans for saving and investing, and wants to find a way to pay herself first. She is willing to make adjustments to her spending habits and would like to see the effect of putting away 10% of her net pay for investing. Draw up a proposed future cash flow budget that will incorporate her ideas. (5 marks)