Question
Using the financial ratios to identify the Clients strengths and weaknesses. The Clients Financial Information (monthly figures): Data provided as of 12/31/2015 Clients wifes Monthly
Using the financial ratios to identify the Clients strengths and weaknesses.
| The Clients Financial Information (monthly figures): Data provided as of 12/31/2015 | |
| Clients wifes Monthly Salary | 2,500 |
| Jewelry | 6,500 |
| 401(k) Account (His) | 110,368 |
| Dividend/Interest Income (monthly) | 47 |
| 401(k) Account (Her) | 37,581 |
| Mortgage Payment (PITI) | 1,777 |
| Boat | 8,000 |
| Infiniti Payment | 448 |
| 2007 Jeep Patriot | 12,000 |
| Jeep Payment | 240 |
| Harley Payment | 210 |
| Furniture | 12,300 |
| BB National Credit Card Payment | 195 |
| Infiniti Loan | 42,000 (3% interest rate. Length of loan unknown ) |
| Sears Credit Card Payment | 305 |
| Brokerage Account | 3,700 |
| Cable | 120 |
| Alarm System | 39 |
| BB National CC | 5,237 ( 24% interest rate ) |
| Life Insurance | 140 |
| Internet | 100 |
| Gas | 370 |
| Cellphone | 130 |
| Clients 's Monthly Salary | 8,800 |
| Harley Davidson | 21,000 |
| Water | 80 |
| Sears CC | 10,200 (18% interest rate ) |
| Entertainment | 400 |
| Auto Insurance | 168 |
| Child Care | 1,400 |
| Home Repairs | 200 |
| 2010 Infiniti E35 | 44,500 |
| Groceries | 500 |
| Checking (Joint) | 2,000 |
| Bank CD (Joint) | 4,000 |
| Dining Out | 400 |
| Hobbies | 300 |
| Savings Account | 2,300 |
| Roth IRA (H) | 7,298 |
| Club Dues | 150 |
| Harley Davidson Loan | 18,000 (6% rate on loan. Remaining terms unknown. ) |
| Dry Cleaning | 160 |
| Charity | 350 |
| Primary Mortgage | 180,000 (This is the approximate balance of the mortgage. The current interest rate is 6.6% and the original loan amount was for $200,000. The mortgage is a 30 year mortgage.) |
| Landscaping | 300 |
| Maid | 400 |
| Parking and Tolls | 40 |
| Dividend/ Interest Reinvestment | 47 |
| Student Loan Payment | 280 |
| clients's 401(k) contributions | 300 |
| Student Loans H | 37,000 (Student Loans were just consolidated. Interest rate is 6% . ) |
| wifes 401(k) contributions | 250 |
| Cash Savings Contribution | 300 |
| Jeep Auto Loan | 10,000 (Interest rate is 5% and original term of the loan is unknown ) |
| clients's Roth Contributions | 220 |
| Total Taxes (FICA AND INCOME TAX) | 553 |
| Primary Home (VALUE) | 278,900 |
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Statistical Techniques For Analytical Review In Auditing
Authors: Kenneth W. Stringer, Trevor R. Stewart
1st Edition
047186076X, 978-0471860761
