Your first clients, Latoya and Sam Kroger, have asked for your assistance putting together a simple family financial plan. They are both 27 years old and Latoya is pregnant with their first child. They plan to have at least 2 more children over the next 5 years for a total of 3 children. They want to make sure they are taking the right steps financially. You will assist them and make recommendations to help them improve their situation in a video presentation.

Use the following information to construct basic financial statements. Develop a future budget and recommendations to improve their financial ratios.

Balances as of December 31, 20XX, some expenses are monthly, quarterly, or annually.

Latoyas Net (After-Tax) Salary (Real Estate Manager)............................ $ 70,000

Sams Net (After-Tax) Salary (Videographer)......................................... $ 45,000

401k annual contribution rate (for both, from net Salary)....................... 2%

401k balances...................................................................................... $ 4,000

Sams Annual Income from Winnings (Axe Throwing Pro)....................... $ 15,000

Current Monthly Rent.......................................................................... $ 1,850

2015 Chevy Sonic Trade-in Value.......................................................... $ 11,500

Jewelry................................................................................................ $ 6,500

Checking Account Balance.................................................................... $ 1,500

Savings Account Balance....................................................................... $ 4,500

Car Fund Money Market Account Balance............................................. $ 3,500

Sams Custom Axe Set.......................................................................... $ 2,800

Roth IRA Account................................................................................. $ 1,200

Schwab Brokerage Account.................................................................. $ 6,352

Sonic Loan Balance, GM Financial Credit................................................ $ 5,068

BOA Credit Card Balance (used for expenses, paid-in-full each month)... $ 2,350

Groceries (Monthly)............................................................................. $ 1,400

Dining out (monthly)............................................................................ $ 1,800

Renters Insurance (Annual)................................................................. $ 280

Auto Insurance (Monthly).................................................................... $ 116

Gasoline (Monthly).............................................................................. $ 140

Auto Maintenance (Annual)................................................................. $ 1,200

Entertainment (Netflix, Axe Throwing, monthly).................................... $ 400

New Home Savings Fund Balance.......................................................... $ 8,000

New Home monthly savings ................................................................. $ 800

Annual Vacations................................................................................. $ 6,000

Water/city utilities and Electricity.......................................................... $ 245

Cell Phones, Internet, and TV................................................................ $ 490

Annual charitable................................................................................. $ 13,000

Student loan balance............................................................................ $ 13,475

Monthly Student loan payment............................................................ $ 385

Monthly Auto loan Payment................................................................. $ 362

Car Savings (monthly).......................................................................... $ 400

Miscellaneous Expenses (monthly)....................................................... $ 500