On September 30, Ashley and Jason started arguing about who is better off. Jason said he wasbetter off because he owned a PlayStation console that he bought last year for $250. He figures that, if needed, he could sell it to a friend for $180. Ashley argued that she was better offbecause she had $1,000 cash in her bank account and a piece of art that she bought two yearsago for $800 but could now probably sell for $1,400. Jason countered that Ashley still owed$250 on a loan and that Jason’s dad promised to buy him a Porsche if he does really well in hisaccounting class. Jason said he had $6,000 cash in his bank account right now because he justreceived a $4,800 student loan. Ashley knows that Jason also owes a tuition installment of $800for this term.Ashley and Jason met again in early November. They asked how each other was doing. Ashleyclaimed that she’d become much more successful than Jason. She had a part-time job, where sheearned $1,500 per month. Jason laughed at Ashley because he had won $1,950 on a lottery tickethe bought in October, and that was merely for the “work” of standing in line for a minute. It wasjust what he needed because his apartment costs $800 each month. Ashley, on the other hand, pays$470 for her share of the rent. Both Ashley and Jason have other normal living costs that total $950each month.1. Prepare a financial report that compares what Ashley and Jason each owns and owes on September 30. Make a list of any decisions you had to make when preparing your report.2. In a written report, identify and justify which of the two characters is better off. If you were acreditor, to whom would you rather lend money?3. Prepare a report that compares what Ashley and Jason each earned during October. Make a listof any decisions you had to make when preparing your report.4. In a written report, identify and justify which of the two characters is more successful. If youwere a creditor considering a three-year loan to one of these characters, to whom would yourather lend money?
On September 30, Ashley and Jason started arguing about who is better off. Jason said he was
better off because he owned a PlayStation console that he bought last year for $250. He figures that, if needed, he could sell it to a friend for $180. Ashley argued that she was better off
because she had $1,000 cash in her bank account and a piece of art that she bought two years
ago for $800 but could now probably sell for $1,400. Jason countered that Ashley still owed
$250 on a loan and that Jason’s dad promised to buy him a Porsche if he does really well in his
accounting class. Jason said he had $6,000 cash in his bank account right now because he just
received a $4,800 student loan. Ashley knows that Jason also owes a tuition installment of $800
for this term.
Ashley and Jason met again in early November. They asked how each other was doing. Ashley
claimed that she’d become much more successful than Jason. She had a part-time job, where she
earned $1,500 per month. Jason laughed at Ashley because he had won $1,950 on a lottery ticket
he bought in October, and that was merely for the “work” of standing in line for a minute. It was
just what he needed because his apartment costs $800 each month. Ashley, on the other hand, pays
$470 for her share of the rent. Both Ashley and Jason have other normal living costs that total $950
each month.
1. Prepare a financial report that compares what Ashley and Jason each owns and owes on September 30. Make a list of any decisions you had to make when preparing your report.
2. In a written report, identify and justify which of the two characters is better off. If you were a
creditor, to whom would you rather lend money?
3. Prepare a report that compares what Ashley and Jason each earned during October. Make a list
of any decisions you had to make when preparing your report.
4. In a written report, identify and justify which of the two characters is more successful. If you
were a creditor considering a three-year loan to one of these characters, to whom would you
rather lend money?
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