# 4- Personal Balance Sheet and Cash Flow statement

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```					     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]

```
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 views: 14 posted: 5/5/2012 language: English pages: 2