CHAPTER 2 ASSIGNMENT Your client is having trouble figuring out where all her money goes each month. Here is her financial information for you to review: $355* STOCKS IN BROKERAGE ACCT $5,500 MASTER CARD BILL $245* MONTHLY PAYCHECK (GROSS) $3,000 PAYROLL TAX WITHHELD $ 600 MONTHLY VISA BILL MONTHLY MORTGAGE PAYMENT $530 MUTUAL FUNDS $2,100 401(K) RETIREMENT ACCT $4,500 MONTHLY CAR PAYMENT $265 MONTHLY UTILITY BILL $275* SAVINGS ACCT BALANCE $2,300 MONTHLY CLOTHING EXPENSES $45 CHECKING ACCOUNT BALANCE QUARTERLY AUTO INSURANCE (NOT YET DUE) ANTIQUE COIN COLLECTION CONDOMINIUM MONTHLY GROCERIES AUTOMOBILE FURNITURE MORTGAGE BALANCE AUTO LOAN BALANCE OTHER PERSONAL PROPERTY OTHER MONTHLY CASH EXPENSES ANNUAL MEDICAL EXPENSES $825 $450 $3,250 $65,000 $225 $9,000 $5,500 $50,000 $4,225 $8,000 $150 $264
CHAPTER 2 ASSIGNMENT Your client is having trouble figuring out where all her money goes each month. Here is her financial information for you to review: $355* STOCKS IN BROKERAGE ACCT $5,500 MASTER CARD BILL $245* MONTHLY PAYCHECK (GROSS) $3,000 PAYROLL TAX WITHHELD $ 600 MONTHLY VISA BILL MONTHLY MORTGAGE PAYMENT $530 MUTUAL FUNDS $2,100 401(K) RETIREMENT ACCT $4,500 MONTHLY CAR PAYMENT $265 MONTHLY UTILITY BILL $275* SAVINGS ACCT BALANCE $2,300 MONTHLY CLOTHING EXPENSES $45 CHECKING ACCOUNT BALANCE QUARTERLY AUTO INSURANCE (NOT YET DUE) ANTIQUE COIN COLLECTION CONDOMINIUM MONTHLY GROCERIES AUTOMOBILE FURNITURE MORTGAGE BALANCE AUTO LOAN BALANCE OTHER PERSONAL PROPERTY OTHER MONTHLY CASH EXPENSES ANNUAL MEDICAL EXPENSES $825 $450 $3,250 $65,000 $225 $9,000 $5,500 $50,000 $4,225 $8,000 $150 $264
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:CHAPTER 2 ASSIGNMENT
Your client is having trouble figuring out where all her money goes each month. Here is her financial information for you to review:
$355*
STOCKS IN BROKERAGE ACCT
$5,500
MASTER CARD BILL
$245*
MONTHLY PAYCHECK (GROSS) $3,000
PAYROLL TAX WITHHELD
$ 600
MONTHLY MORTGAGE PAYMENT $530
MUTUAL FUNDS
$2,100
401(K) RETIREMENT ACCT
$4,500
$265
$275*
SAVINGS ACCT BALANCE
$2,300
MONTHLY CLOTHING EXPENSES $45
MONTHLY VISA BILL
MONTHLY CAR PAYMENT
MONTHLY UTILITY BILL
CHECKING ACCOUNT BALANCE
QUARTERLY AUTO INSURANCE (NOT YET DUE)
ANTIQUE COIN COLLECTION
CONDOMINIUM
MONTHLY GROCERIES
AUTOMOBILE
FURNITURE
MORTGAGE BALANCE
AUTO LOAN BALANCE
OTHER PERSONAL PROPERTY
OTHER MONTHLY CASH EXPENSES
ANNUAL MEDICAL EXPENSES
*Bills represent the average of the prior month's charges AND ALSO current month's expenses.
$825
$450
$3,250
$65,000
$225
$9,000
$5,500
$50,000
$4,225
$8,000
$150
$264
Transcribed Image Text:Questions:
1) What are the Monetary Assets listed above?
2) What are the Investment Assets listed above?
3) What are the Retirement Assets listed above?
4) How much are the Total Assets?
5) What are the Current (short term) Debts listed above?
6) What are the total debts?
7) What is your client's net worth?
8) What is the Current Ratio?
9) What is the Debt Ratio?
HINT: Since they are average amounts you may assume that the credit card and utility bills are both a debt (related to the prior month) and an
expense (related to the current month).
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