Use Worksheet 2.1. Elizabeth Walkers banker has asked her to submit a personal balance sheet as of June 30, 2007, in support of an application for a $3,000 home improvement loan. She comes to you for help in preparing it. So far, she has made the following list of her assets and liabilities at June 30, 2007:

Cash on hand $ 70

Balance in checking account 180

Balance in money market deposit account with Mid-American Savings 650

Bills outstanding: Telephone $ 20 Electricity 70 Charge account balance 190 Visa 180 MasterCard 220 Taxes 400 Insurance 220 1,300 Condo and property 68,000 Home mortgage loan 52,000 Automobile: 2003 Honda Civic 10,000 Installment loan balances: Auto loans 3,000 Furniture loan 500 3,500 Personal property: Furniture 1,050 Clothing 900 1,950 Investments: U.S. government savings bonds 500 Stock of WIMCO Corporation 3,000 3,500 From the data given, prepare Elizabeth Walkers balance sheet, dated June 30, 2003 (follow the balance sheet form shown in Worksheet 2.1). Then evaluate her balance sheet relative to the following factors: (a) solvency, (b) liquidity, and (c) equity in her dominant asset.

BALANCE SHEET

Name(s) Elizabeth Walker Date June 30, 2007

Cash on hand	$ 70
In checking	180
Saving accounts	650
Money market Funds and deposits	0
Certificates of deposit	0
Total Liquid Assets		$ 900

Investments

Stocks	$ 3000
Bond	5000
Certificates of deposit	0
Mutual funds	0
Real estate	0
Retirement funds,IRA	0
Other	0
Total Investment		$ 8000

Real Property

Primary residence	$
Second home
Other
Total Real Property		$

Personal Property

Auto(s)	$
Auto(s)
Recreational vehiches
Household furnishing
Jewelry and artwork
Other
Other
Total Personal Property		$

Total Assets $

Current Liabilities

Utilities	$
Rent
Insurance premiums
Taxes
Medical/dental bills
Repair bills
Bank credit card balances
Dept. store credit card balances.
Travel and entertainment card balances
Gas and other credit card balances
Bank line of credit balances
Other current liabilities
Total Current Liabilities

Lon-Term Liabilities

Primary residence mortgage
Second home mortgage
Real estate investment mortgage
Auto loans
Appliance/furniture loans
Home improvement loans
Single-payment loans
Education loans
Margin loans used to purchase securities
Other long-term loans
Total Long-Term Liabilities		$

(II) Total Liabilities $

Net Worth [(I) - (II)] $

Total Liabilities and Net Worth $