mod10top1_application_template.docx

Rania L. 10.1 Application: Making Financial Plans 1. What are Alexis’ total assets? a. Alexis’ total assets are $112,600.00. 2. What are Alexis’ total liabilities? a. Alexis’ total liabilities are $29,400.00. 3. What is Alexis’ net worth? a. Alexis’ net worth is $83,200.00 4. If income taxes decrease, what do you suggest Alexis does with the extra take-home money? Why? a. If income taxes decrease, I would suggest that Alexis uses that extra take-home money to expand her boutique’s inventory or marketing efforts because it would allow Alexis to promote her shop and enhance her chances of success and growth within her business. 5. Unemployment rates are high right now. How might this affect Alexis’ business? a. The high unemployment rates might affect Alexis’ business positively because she could hire people seeking job opportunities to help out with the boutique. 6. How might the current low-interest rates and economic deflation affect Alexis’ financial plan to open a boutique? a. The low-interest rates and economic deflation might affect Alexis’ financial plan to open a boutique by the low-interest making it cheaper to borrow money to open her boutique, and the economic deflation allowing the supplies for her business to most likely be less expensive and more affordable. 7. Will you invest in Alexis’ business? Why or why not? Be sure to take into account the risk of the products and Alexis’ financial goals. a. Yes, I would invest in Alexis’ business because I believe her net worth is well capable to open a boutique and meet her goal of doing so. Additionally, with the circumstances of the unemployment rates and low-interest rates, these factors would ultimately help her form a basis the creation of her business.

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