Assignment
Answer the following questions:
1. Calculating Balance Sheet Amounts. Based on the following data, compute the total assets, total liabilities, and net worth.
Liquid assets $4,670 Household assets $93,780
Investment assets 26,910 Long-term liabilities 76,230
Current liabilities 2,670
2. 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
Telephone bill paid for month, $65
Credit card balance, $235
Loan payment, $80
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
Clothing purchase, $110
Restaurant spending, $130
3. Calculating Financial Ratios. The Fram family has liabilities of $128,000 and a net worth of $340,000. What is their debt ratio? How would you assess this?
4. Determining Budget Variances. Fran Bowen created the following budget:
Food, $350
Clothing, $100
Transportation, $320
Personal expenses and recreation, $275
Housing, $950
She actually spent $298 for food, $337 for transportation, $982 for housing, $134 for clothing, and $231 for personal expenses and recreation. Calculate the variance for each of these categories, and indicate whether it was a deficit or surplus.
5. Future Value of Savings. Kara George received a $4,000 gift for graduation from her uncle. If she deposits the entire amount in an account paying 3 percent, what will be the value of this gift in 15 years?
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also include a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also Include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.