Question

QUESTIONS 1-3 GO WITH THE FOLLOWING: Terry Dactal has compiled the financial information displayed below. Which of the following is Terry's net worth? $8,600 $8,450 $8,500 $14,300 $40,900 Salaries $72,400 Credit Card Balance Cash on Had 1,500 Utilities paid to date Coin Collection $2,350 Jewelry value Home value $335,000 Auto loan balance Stock Portfolio $18,500 value 1967 Ford Mustang value Grocery Expenses $7,550 Checking account $3,200 Mortgage Balance $278,600 Property Taxes owed $1,750 Mortgage loan payments made $19,500 New York vacatiorn expenses paid Income taxes paid-to-date Student loan balance $26,200 Auto loan payments $4,200 paid $6,600 Clothing/entertainment expense Insurance premiums paid $9,100 $5,000 Interest earned $400 $5,500

Which of the following is Terry's cash surplus/deficit?

$ 13,800

$6,900

$ 7,100

$10,500

Answer 1

COMPUTATION OF TERRY'S NETWORTH:-

Terry's Networth = $ 80,500.

COMPUTATION OF DEFICIT/SURPLUS:-

Profit and loss account/ Cash accoounting basis Amount $'s Particulars Particulars Amount $'s 72,400.00 S 19,500.00 interest earned $400.00 Grocessory expenses 7,550.00 Salaries loan payment vacation expense 4,200.00 income taxes paid $9,100.00 utilities paid auto loan payments $ 6,600.00 cloting expes insurance pre paid 5,500.00 8,450.00 S5,000.00 Surplus S 6,900.00 $ 72,800.00 S 72,800.00

Terry's balance is SURPLUS of $6,900.