Mr. C is 31 years old and Mrs. T is 30 years old. They have a son Mr. C and a daughter Ms. H. Mr. C is a store manager and makes $45,000 a year, while Mrs. T is an accountant who earns $53,000 each year. The D family is currently renting a townhome for $2,000 per month but they are hoping to put a down payment on their dream home within 3 to 5 years. Currently they have $13,000 saved in mutual fund with the intention to put it towards their down payment. Mrs. T has a life insurance policy that has built up a cash value of $1,800. Their credit card debt typically remains around $1,300 while they make $100 monthly payments. Together they have a saving account balance of $2,500. Mrs. on the other hand, indicated that she is willing to take financial risks when she thinks the returns are worthwhile. Both Mr. C and Mrs. T enjoy the outdoors and maintain their health. They have even considered joining a golf club that charges a monthly fee of $250. They have two automobiles one of which they own and they still owe $12,925 on the other. Their household furniture, electronics, and other personal property are worth approximately $12,000. One of their greatest assets however is Mrs. T’s antique jewelry, which she received from her grandmother. The jewelry is valued at $19,700. Mrs. T also has a mutual fund that was given to her by her father. The current value of the fund is $2,300. Combines, they have a student loan balance of $8,200 and an installment loan with a balance of $5,300. Character in this case: Mr. C, Mrs. T, Ms H and Mr. Ch. Adequate information: Food (at home and dining out) $6,900 Medical insurance $3,200 Renter’s insurance $600 Charity donations $2,400 Property taxes (auto) $695 Savings $1,200 To construct: Income statement for the given family. Introduction: Income statement refers to that statement which contains the net period income or loss of an individual or a company. It also contains the expenses for the given period.

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Chapter 4, Problem CC.3Q

Summary Introduction

Case summary:

Mr. C is 31 years old and Mrs. T is 30 years old. They have a son Mr. C and a daughter Ms. H. Mr. C is a store manager and makes $45,000 a year, while Mrs. T is an accountant who earns $53,000 each year. The D family is currently renting a townhome for $2,000 per month but they are hoping to put a down payment on their dream home within 3 to 5 years. Currently they have $13,000 saved in mutual fund with the intention to put it towards their down payment. Mrs. T has a life insurance policy that has built up a cash value of $1,800. Their credit card debt typically remains around $1,300 while they make $100 monthly payments. Together they have a saving account balance of $2,500. Mrs. on the other hand, indicated that she is willing to take financial risks when she thinks the returns are worthwhile. Both Mr. C and Mrs. T enjoy the outdoors and maintain their health. They have even considered joining a golf club that charges a monthly fee of $250. They have two automobiles one of which they own and they still owe $12,925 on the other. Their household furniture, electronics, and other personal property are worth approximately $12,000. One of their greatest assets however is Mrs. T’s antique jewelry, which she received from her grandmother. The jewelry is valued at $19,700. Mrs. T also has a mutual fund that was given to her by her father. The current value of the fund is $2,300. Combines, they have a student loan balance of $8,200 and an installment loan with a balance of $5,300.

Character in this case:

Mr. C, Mrs. T, Ms H and Mr. Ch.

Adequate information:

Food (at home and dining out) $6,900

Medical insurance $3,200

Renter’s insurance $600

Charity donations $2,400

Property taxes (auto) $695

Savings $1,200

To construct:

Income statement for the given family.

Introduction:

Income statement refers to that statement which contains the net period income or loss of an individual or a company. It also contains the expenses for the given period.

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