Analyzing the positive and negative aspects of financial statement.
Based on the information in the original case and in their financial statements, list at least 3 positive and 3 negative aspects of Kevin and Stacy's current financial status.
After reading the text and class notes, you now probably realize that Kevin and Stacy's financial goals are not defined well enough in the original case to serve as the basis for their financial plan and cash budget. Upon further discussion they have restated their financial goals as follows:
To buy a lake house (vacation house) as soon as possible. Kevin's grandmother's estate will be settled shortly and he expects to receive $20,000 to help with the down payment and other front-end costs. They are willing to liquidate some assets to pay for the remainder of the front-end costs, if necessary.
To have a total of $18,000 accumulated in their money market account in 2 years to be used as their emergency fund. They currently have $4,002 accumulated.
To save $7,000 for the down payment on a new car in 3 years.
To invest $3,500 each year in IRAs for retirement in 25 years.
To save $35,000 for remodeling the lake house which they plan to live in during retirement.
They want to have the money in 20 years so that they can remodel before moving into the house.
To have $85,000 for Samantha's college in 12 years. They have trageted the McDonalds stock (now worth $11,606) for this goal.