Balance Sheet Name(s): Steve and Bonnie Foster Date: December 31, 2022 Assets Liquid Assets Cash Checking Savings Total Liquid Assets: Liabilities and Net Worth Current Liabilities $663.30 Electric $350.17 729.63 Water 150.07 829.13 Insurance premiums 250.13 $2,222.06 Taxes 362.50 Mortgage 2,416.67 Auto 750.38 MasterCard 650.33 Investments Retirement funds, $3,189.38 IRA Total Investments: $3,189.38 Total Current Liabilities: Long-Term Liabilities Primary residence $116,000.16 mortgage $469,800.00 Total Long-Term Liabilities: Real Property Primary residence $469,800.00 Total Real Property: Personal Property Honda Pilot $34,485.00 Total Personal $34,485.00 Property: $4,930.250 $116,000. 180 (2) Total Liabilities: (1) Total Assets: $509,696.440 Net Worth (1) - (2): $120,930,410 $388,766.030 Total Liabilities and Net Worth: $509,696.440 Based on the completed balance sheet, the Fosters' net worth is $388,766.030 It isn't just the preparation of a balance sheet but the interpretation of the date that can reveal a family's financial condition. Steve and Bonnie Foster are both age 44. What conclusions can you draw? With their balance sheet in place, Steve and Bonnie can compare their total liabilities to their total assets to generate a more realistic view of their current wealth position. would be considered their dominant asset. • Their home • ⚫ Based on their liabilities, it does not appear that they have adequate liquid assets to meet their bill payments and to cover any small, unexpected expenses. • Their balance sheet lists their house at 8% higher than the purchase price. The equity in their home is S
Balance Sheet Name(s): Steve and Bonnie Foster Date: December 31, 2022 Assets Liquid Assets Cash Checking Savings Total Liquid Assets: Liabilities and Net Worth Current Liabilities $663.30 Electric $350.17 729.63 Water 150.07 829.13 Insurance premiums 250.13 $2,222.06 Taxes 362.50 Mortgage 2,416.67 Auto 750.38 MasterCard 650.33 Investments Retirement funds, $3,189.38 IRA Total Investments: $3,189.38 Total Current Liabilities: Long-Term Liabilities Primary residence $116,000.16 mortgage $469,800.00 Total Long-Term Liabilities: Real Property Primary residence $469,800.00 Total Real Property: Personal Property Honda Pilot $34,485.00 Total Personal $34,485.00 Property: $4,930.250 $116,000. 180 (2) Total Liabilities: (1) Total Assets: $509,696.440 Net Worth (1) - (2): $120,930,410 $388,766.030 Total Liabilities and Net Worth: $509,696.440 Based on the completed balance sheet, the Fosters' net worth is $388,766.030 It isn't just the preparation of a balance sheet but the interpretation of the date that can reveal a family's financial condition. Steve and Bonnie Foster are both age 44. What conclusions can you draw? With their balance sheet in place, Steve and Bonnie can compare their total liabilities to their total assets to generate a more realistic view of their current wealth position. would be considered their dominant asset. • Their home • ⚫ Based on their liabilities, it does not appear that they have adequate liquid assets to meet their bill payments and to cover any small, unexpected expenses. • Their balance sheet lists their house at 8% higher than the purchase price. The equity in their home is S
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Balance Sheet
Name(s): Steve and Bonnie Foster
Date: December 31, 2022
Assets
Liquid Assets
Cash
Checking
Savings
Total Liquid Assets:
Liabilities and Net Worth
Current Liabilities
$663.30
Electric
$350.17
729.63
Water
150.07
829.13
Insurance premiums
250.13
$2,222.06
Taxes
362.50
Mortgage
2,416.67
Auto
750.38
MasterCard
650.33
Investments
Retirement funds,
$3,189.38
IRA
Total Investments:
$3,189.38
Total Current
Liabilities:
Long-Term
Liabilities
Primary residence
$116,000.16
mortgage
$469,800.00
Total Long-Term
Liabilities:
Real Property
Primary residence
$469,800.00
Total Real
Property:
Personal Property
Honda Pilot
$34,485.00
Total Personal
$34,485.00
Property:
$4,930.250
$116,000. 180
(2) Total Liabilities:
(1) Total
Assets:
$509,696.440
Net Worth (1) - (2):
$120,930,410
$388,766.030
Total Liabilities and
Net Worth:
$509,696.440
Based on the completed balance sheet, the Fosters' net worth is
$388,766.030
It isn't just the preparation of a balance sheet but the interpretation of the date that can reveal a family's financial condition. Steve and Bonnie Foster
are both age 44. What conclusions can you draw?
With their balance sheet in place, Steve and Bonnie can compare their total liabilities to their total assets to generate a more realistic view of their
current wealth position.
would be considered their dominant asset.
• Their
home
•
⚫ Based on their liabilities, it does not
appear that they have adequate liquid assets to meet their bill payments and to cover any small,
unexpected expenses.
• Their balance sheet lists their house at 8% higher than the purchase price. The equity in their home is S
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