4- Personal Balance Sheet and Cash Flow statement

Document Sample
4- Personal Balance Sheet and Cash Flow statement Powered By Docstoc
					     ame:_______________        Financial Planning Block:_______

 Name:_______________               Financial Planning                           Block:_______


              Personal Balance Sheet and Cash Flow Statement Review
Jack, a close family friend of yours, has found out that you are in Mr. Howren’s Personal
Finance class and needs help with his finances. He has come to you with a bunch of papers and
receipts and he would like you to convert them into a personal balance sheet and cash flow
statement for him.
Here is what you have for Jack’s box of information

       Jack’s take home pay is $2,080
       His has a mortgage of $95,000 with monthly payment of $800
       He pays a $70 cable bill every month
       He has a house valued at $100,000
       He spends $125 on recreation each month
       Saving Account Balance $8,000
       Jack has stock investments worth $7,000
       He owns a car that is valued at $22,000
       He has a car loan of $12,000 and a $250 monthly car payment
       Checking Account Balance of $5,000
       He has a computer that has a value of $1,200
       He spends $200 a month on clothing
       He has a bunch of baseball cards valued at $500
       He owns his own furniture valued at $700
       He has a retirement account (401k) valued at $30,000 and contributes $75 a month to it
       Jack has Medical bills and a credit card balance at $1,300 each
       He pays $115 toward medical bills and $115 toward his credit card balance each month
       He spends $100 a month on takeout food

Part A: First let’s figure out what Jack’s monthly personal costs are (food, recreation, etc.)

    1. Add all personal monthly costs below in the given box:




                                                    _____________Total Monthly Costs


    2. Now record what Jack’s monthly take home pay: ______________________.
    3. Subtract the total monthly costs from the monthly take home pay to get his N.C.F
                                     -
        Total Monthly take home pay Total monthly costs = Net Cash Flow
        Record this number on the balance sheet under Net Cash Flow.




[Type text]                           [Type text] [Type text]
     ame:_______________         Financial Planning Block:_______

 Name:_______________                    Financial Planning                            Block:_______

                                Jack’s Personal Balance Sheet
                           ASSETS                             Amount
                Net Cash Flow
                Checking Account
                Savings Account
                Total Liquid Assets
                Personal Possessions             -----------------------------------
                Market Value of Home
                Market Value of Car
                Furniture and appliances
                Electronic equipment
                Collectibles
                Total Personal Possessions
                      Investment Assets         ------------------------------------
                Retirement Accounts
                Stock Investments
                Total Investment Assets
                      TOTAL ASSETS
                        LIABILITIES                      LIABILITIES
                      Current Liabilities        -----------------------------------
                Medical Bills
                Credit Card Balances
                     Total Current Liabilities
                   Long-Term Liabilities                    --------------
                Mortgage
                Car Loan
                 Total Long Term Liabilities
                TOTAL LIABILITIES
                NET WORTH
                (Assets – Liabilities)

    1. Does Jack have a positive or negative net worth?

    2. What costs on the personal balance sheet were you most surprised by? Why?

    3. What are some things he can he do to increase his net worth?




[Type text]                               [Type text] [Type text]

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:14
posted:5/5/2012
language:English
pages:2