The following financial information is provided by Gina in September 2022: a) Paid electricity expenses (the bill covered expenses for July and August), $6,500 b) Received monthly salary for September, $33,800 c) Spending on food, $3,450 d) Cash in checking account, $4,800 c) Savings account balance, $68,900 f) Balance of car loan, $21,600 g) Current value of car, $20,800 h) Paid the theme park's annual pass which to be expired within 12 months, $920 i) Credit card balance, \$2,550 j) Paid the monthly installment of car loan, $4,800 k) Paid car insurance premium, $2,320 l) Household possessions, $31,000 m ) Paid telephone and broadband expenses, $320 n) Paid parking fees, $3,680 o) MacBook Pro, $6,200 p) Spending on clothing purchases, $1,100 q) Spending on dine-out, $1,500 r) Received interest from HKSAR's green bonds, $450 s) Current value of an antique watch for investment purpose, $58,000 t) Purchase price of 200 shares of HK Stock Exchange (0388.HK), $64,500 u) Current value of 200 shares of HK Stock Exchange (0388.HK), S62,000 v) HKSAR's green-bonds, $30,000 REQUIRED a) Calculate Gina's total liquid assets, personal possessions and total investment assets. Show your workings. (6 marks) b) Calculate total cash inflows and total cash outflows. Show your workings. (4 marks) c) It appears that Gina has many cash outflow items in September. She worries that she is unable to save money and needs to use her savings in the banking account to cover the shortage. Recently, Gina's company is negotiating a merger with another business that may result in her job loss. With reference to your answer in parts (a) and (b), comment Gina's concerns. Support your answer with relevant financial data and ratios. (word limit: 150 words) (10 marks) The following financial information is provided by Gina in September 2022: a) Paid electricity expenses (the bill covered expenses for July and August), $6,500 b) Received monthly salary for September, $33,800 c) Spending on food, $3,450 d) Cash in checking account, $4,800 c) Savings account balance, $68,900 f) Balance of car loan, $21,600 g) Current value of car, $20,800 h) Paid the theme park's annual pass which to be expired within 12 months, $920 i) Credit card balance, \$2,550 j) Paid the monthly installment of car loan, $4,800 k) Paid car insurance premium, $2,320 l) Household possessions, $31,000 m ) Paid telephone and broadband expenses, $320 n) Paid parking fees, $3,680 o) MacBook Pro, $6,200 p) Spending on clothing purchases, $1,100 q) Spending on dine-out, $1,500 r) Received interest from HKSAR's green bonds, $450 s) Current value of an antique watch for investment purpose, $58,000 t) Purchase price of 200 shares of HK Stock Exchange (0388.HK), $64,500 u) Current value of 200 shares of HK Stock Exchange (0388.HK), S62,000 v) HKSAR's green-bonds, $30,000 REQUIRED a) Calculate Gina's total liquid assets, personal possessions and total investment assets. Show your workings. (6 marks) b) Calculate total cash inflows and total cash outflows. Show your workings. (4 marks) c) It appears that Gina has many cash outflow items in September. She worries that she is unable to save money and needs to use her savings in the banking account to cover the shortage. Recently, Gina's company is negotiating a merger with another business that may result in her job loss. With reference to your answer in parts (a) and (b), comment Gina's concerns. Support your answer with relevant financial data and ratios. (word limit: 150 words) (10 marks)
