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Preparing a Personal Balance Sheet. Use the following items to prepare a balance sheet and a cash flow statement. Determine the total assets, total liabilities, net worth, total cash inflows, and total cash outflows. Rent for the month, $650 Monthly take-home salary, $1,950 Cash in checking account, $450 Savings account balance, $1,890 Spending for food, $345 Balance of educational loan, $2,160 Current value of automobile, $7,800 Auto insurance, $230 Household possessions, $3,400 Stereo equipment, $2,350 Payment for electricity, $90 Lunches/parking at work, $180 Donations, $70 Home computer, $1,500 Value of stock investment, $860 Telephone bill paid for month, $65 Credit card balance, $235 Clothing purchase, $110 Restaurant spending, $130 Loan payment, $80

Preparing a Personal Balance Sheet. Use the following items to prepare a balance sheet and a cash flow statement. Determine the total assets, total liabilities, net worth, total cash inflows, and total cash outflows. Rent for the month, $650 Monthly take-home salary, $1,950 Cash in checking account, $450 Savings account balance, $1,890 Spending for food, $345 Balance of educational loan, $2,160 Current value of automobile, $7,800 Auto insurance, $230 Household possessions, $3,400 Stereo equipment, $2,350 Payment for electricity, $90 Lunches/parking at work, $180 Donations, $70 Home computer, $1,500 Value of stock investment, $860 Telephone bill paid for month, $65 Credit card balance, $235 Clothing purchase, $110 Restaurant spending, $130 Loan payment, $80

Essentials Of Investments
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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I need help with Questions #3 and #4, please.

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Preparing a Personal Balance Sheet. Use the following items to prepare a balance sheet and a cash flow statement. Determine the total assets, total liabilities, net worth, total cash inflows, and total cash outflows. Rent for the month, $650 Monthly take-home salary, $1,950 Cash in checking account, $450 Savings account balance, $1,890 Spending for food, $345 Balance of educational loan, $2,160 Current value of automobile, $7,800 Auto insurance, $230 Household possessions, $3,400 Stereo equipment, $2,350 Payment for electricity, $90 Lunches/parking at work, $180 Donations, $70 Home computer, $1,500 Value of stock investment, $860 Telephone bill paid for month, $65 Credit card balance, $235 Clothing purchase, $110 Restaurant spending, $130 Loan payment, $80
Transcribed Image Text:Preparing a Personal Balance Sheet. Use the following items to prepare a balance sheet and a cash flow statement. Determine the total assets, total liabilities, net worth, total cash inflows, and total cash outflows. Rent for the month, $650 Monthly take-home salary, $1,950 Cash in checking account, $450 Savings account balance, $1,890 Spending for food, $345 Balance of educational loan, $2,160 Current value of automobile, $7,800 Auto insurance, $230 Household possessions, $3,400 Stereo equipment, $2,350 Payment for electricity, $90 Lunches/parking at work, $180 Donations, $70 Home computer, $1,500 Value of stock investment, $860 Telephone bill paid for month, $65 Credit card balance, $235 Clothing purchase, $110 Restaurant spending, $130 Loan payment, $80
14 com/r/s/0/doc/617387/sp/527 GitHub ISACA My ISACA G Grammarly SEJ 22 Useful & Quick... 9Login to Bootcamp... LU Connect Log in L Google Drive Acco... 4. Computing Balance Sheet Amounts. For each of the following situations, compute the missing amount. LO3-2 a. Assets $48,000; liabilities $12,800; net worth $ ; net worth $13,700. b. Assets $78,780; liabilities $ c. Assets $44,280; liabilities $12,265; net worth $. d. Assets $ liabilities $38,374; net worth $53,795. 5. Calculating Financial Ratios. The Fram family has liabilities of $128,000 and assets of $340,000. What is their debt ratio? How would you assess this? LO3-2 6. Determining Financial Progress. Carl Lester has liquid assets of $2,680 and current liabilities of $2,436. What is his current ratio? What comments do you have about this financial position? LO3-2 7. Determining Budget Variances. Fran Bowen created the following budget: LO3-3 Clothing, $100 Personal expenses and recreation, $275 Food, $350 Transportation, $320 Housing, $950 She actually spent $298 for food, $337 for transportation, $982 for housing, $134 for clothing, and $231 for expenses and recreation. Calculate the variance for each of these categories, and indicate whether it was a deficit or a surplus. personal 8. Calculating the Effect of Inflation. Bill and Sally Kaplan have an annual spending plan that amounts to $39,500. If inflation is 3 percent a year for the next three years, what amount will the Kaplans need for their living expenses three years from LO3-3 now? 9. Computing the Time Value of Money for Savings. Use future value and present value calculations (see Chapter 1 Appendix) to determine the following: LO3-4 a. The future value of a $400 savings deposit after eight years at an annual interest rate of 3 percent. b. The future value of saving $1,800 a year for five years at an annual interest rate of 4 percent. c. The present value of a $6,000 savings account that will earn 3 percent interest for four years. LO3-4 10. Calculating Present Value of a Savings Fund. Hal Thomas wants to establish a savings fund from which a community orga- nization could draw $1,000 a year for 20 years. If the account earns 2 percent, what amount would he have to deposit now to
Transcribed Image Text:14 com/r/s/0/doc/617387/sp/527 GitHub ISACA My ISACA G Grammarly SEJ 22 Useful & Quick... 9Login to Bootcamp... LU Connect Log in L Google Drive Acco... 4. Computing Balance Sheet Amounts. For each of the following situations, compute the missing amount. LO3-2 a. Assets $48,000; liabilities $12,800; net worth $ ; net worth $13,700. b. Assets $78,780; liabilities $ c. Assets $44,280; liabilities $12,265; net worth $. d. Assets $ liabilities $38,374; net worth $53,795. 5. Calculating Financial Ratios. The Fram family has liabilities of $128,000 and assets of $340,000. What is their debt ratio? How would you assess this? LO3-2 6. Determining Financial Progress. Carl Lester has liquid assets of $2,680 and current liabilities of $2,436. What is his current ratio? What comments do you have about this financial position? LO3-2 7. Determining Budget Variances. Fran Bowen created the following budget: LO3-3 Clothing, $100 Personal expenses and recreation, $275 Food, $350 Transportation, $320 Housing, $950 She actually spent $298 for food, $337 for transportation, $982 for housing, $134 for clothing, and $231 for expenses and recreation. Calculate the variance for each of these categories, and indicate whether it was a deficit or a surplus. personal 8. Calculating the Effect of Inflation. Bill and Sally Kaplan have an annual spending plan that amounts to $39,500. If inflation is 3 percent a year for the next three years, what amount will the Kaplans need for their living expenses three years from LO3-3 now? 9. Computing the Time Value of Money for Savings. Use future value and present value calculations (see Chapter 1 Appendix) to determine the following: LO3-4 a. The future value of a $400 savings deposit after eight years at an annual interest rate of 3 percent. b. The future value of saving $1,800 a year for five years at an annual interest rate of 4 percent. c. The present value of a $6,000 savings account that will earn 3 percent interest for four years. LO3-4 10. Calculating Present Value of a Savings Fund. Hal Thomas wants to establish a savings fund from which a community orga- nization could draw $1,000 a year for 20 years. If the account earns 2 percent, what amount would he have to deposit now to
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