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Use Worksheet 2.1 Katie Wright's banker has asked her to submit a personal balance sheet as of June 30, 2020, in support of an application

Use Worksheet 2.1 Katie Wright's banker has asked her to submit a personal balance sheet as of June 30, 2020, 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 as of June 30, 2016:

Cash on hand $ 70
Balance in checking account 180
Balance in money market deposit account with Southwest Savings 710
Bills outstanding:
Telephone $ 20
Electricity 70
Charge account balance 190
Visa 180
MasterCard 220
Taxes 400
Insurance 220 $1,300
Condo and property 72,000
Condo mortgage loan 55,000
Automobile: 2016 Honda Civic 12,000
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
Apple Stock 3,000 3,500

From the data given, prepare Katie Wright's balance sheet, dated June 30, 2020 (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): Katie Wright Date: 30-Jun-20
Assets Liabilities and Net Worth
Liquid assets: Current liabilities:
Cash on hand $ Utilities $
In checking Rent
Savings accounts Insurance premiums
Money Market funds and deposits Taxes
Medical/dental bills
Certificates of deposit ( Repair bills
Total Liquid Assets $ Bank credit card balances
Investments: Dept. store credit card balances
Stocks Travel and entertainment card balances
Bonds Gas and other credit balances
Certificates of deposit ( Bank line of credit balances
Mutual funds Other current liabilities
Real estate Total Current Liabilities $
Retirement funds, IRA Long-term Liabilities
Other Primary residence mortgage $
Total Investments $ Real estate investment
Real Property mortgage
Primary residence $ Auto loans
Second home Appliance/furniture loans
Other Home improvement loans
Total Real Property $ Single-payment loans
Personal Property Education loans
Auto(s): 2016 Honda Civic $ Margin loans
Other long-term liabilities
Recreational vehicles
Household furnishings Total Long-Term Liabilities $
Jewelry and artwork
Other Total Liabilities $
Other
Total Personal Property $ Net Worth $
Total Assets $ Total Liabilities and Net Worth $

  1. Solvency ratio. Enter your answer as a percentage rounded to two decimal places. %
  2. Liquidity ratio. Enter your answer as a percentage rounded to two decimal places. %
  3. Equity in her dominant asset. Enter your answer as a percentage rounded to two decimal places. %

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Namels $ Liquid Assets Cash on hand In checking Savings accounts Money market funds and deposits Certificates of deposit (dyr. to maturity) Total Liquid Assets BALANCE SHEET Date December 17, 2010 LIABILITIES AND NET WORTH Current Liabilities Utilities Rent Insurance premiums Taxes Medical/dental bills Repair bills Investments 5 Stocks 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 Bonds Certificates of deposit 1 y. to maturity) Mutual funds Real estate Retirement funds, IRA 5 Other S Total Investments Real Property 8 Primary residence Second home Other Total Real Property Personal Property Total Current Liabilities Long-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 Ipurchase securities Other long-term loans Total Long-Term Liabilities Auto(s): Recreational vehicles Household furnishing Jewelry and artwork Other Other Total Personal Property (11) Total Liabilities $ Net Worth (0) - (0 $ Total Assets Total Liabilities and Net Worth $ - 2. Solvency ratio. Enter your answer as a percentage rounded to two decimal places. % b. Liquidity ratio. Enter your answer as a percentage rounded to two decimal places. . Equity in her dominant asset. Enter your answer as a percentage rounded to two decimal Use Worksheet 2.1 Katie Wright's banker has asked her to submit a personal balance sh of June 30, 2020, 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 liabilities as of June 30, 2016: 70 $ 180 710 $ 20 190 180 220 400 220 Cash on hand Balance in checking account Balance in money market deposit account with Southwest Savings Bills outstanding: Telephone Electricity Charge account balance Visa MasterCard Taxes Insurance Condo and property Condo mortgage loan Automobile: 2016 Honda Civic Installment loan balances: Auto loans Furniture loan Personal property: Furniture Clothing Investments: U.S. government savings bonds Apple Stock $1,300 72,000 55,000 12,000 3,000 500 3,500 1,050 900 1,950 500 3,000 3,500 Namels $ Liquid Assets Cash on hand In checking Savings accounts Money market funds and deposits Certificates of deposit (dyr. to maturity) Total Liquid Assets BALANCE SHEET Date December 17, 2010 LIABILITIES AND NET WORTH Current Liabilities Utilities Rent Insurance premiums Taxes Medical/dental bills Repair bills Investments 5 Stocks 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 Bonds Certificates of deposit 1 y. to maturity) Mutual funds Real estate Retirement funds, IRA 5 Other S Total Investments Real Property 8 Primary residence Second home Other Total Real Property Personal Property Total Current Liabilities Long-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 Ipurchase securities Other long-term loans Total Long-Term Liabilities Auto(s): Recreational vehicles Household furnishing Jewelry and artwork Other Other Total Personal Property (11) Total Liabilities $ Net Worth (0) - (0 $ Total Assets Total Liabilities and Net Worth $ - 2. Solvency ratio. Enter your answer as a percentage rounded to two decimal places. % b. Liquidity ratio. Enter your answer as a percentage rounded to two decimal places. . Equity in her dominant asset. Enter your answer as a percentage rounded to two decimal Use Worksheet 2.1 Katie Wright's banker has asked her to submit a personal balance sh of June 30, 2020, 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 liabilities as of June 30, 2016: 70 $ 180 710 $ 20 190 180 220 400 220 Cash on hand Balance in checking account Balance in money market deposit account with Southwest Savings Bills outstanding: Telephone Electricity Charge account balance Visa MasterCard Taxes Insurance Condo and property Condo mortgage loan Automobile: 2016 Honda Civic Installment loan balances: Auto loans Furniture loan Personal property: Furniture Clothing Investments: U.S. government savings bonds Apple Stock $1,300 72,000 55,000 12,000 3,000 500 3,500 1,050 900 1,950 500 3,000 3,500

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