Question

Case Study: Carol Jones

Carol works as a business representative for an import/export company. Her job provides her with the opportunity to travel and experience new things. Because she travels so much, Carol feels that she does not have a handle on her finances. She has decided to pay a visit to a financial advisor for help.

Carol's Salary	$2,000		Auto Payment	$262
Home	$100,000		Mastercard	$5,000	Int 15%
Gas/Heating	$100		Visa Card	$3,000	Int 15%
Electric	$125		Bloomingdale Card	$1,500	Int 29%
Water	$60		Personal Loan	$5,000	Int 5%, 60 mths
Internet/Cable	$150		Mortgage	$95,000
Phone	$50		Mortgage Payment	$796
Cell Phone	$200		Car	$20,000
Food	$250		Gym Membership	$20
Mortgage Payment	$796		Personal Loan Payment	$94
Car Insurance	$165		Carol's 401K	$50,000
Savings	$500		Auto Loan	$15,000
Checking	$1,000		Visa Payment	$60
Lawn Service	$100		Bloomingdale Payment	$30
			Mastercard	$100

Create the following financial analyses using the information provided for Carol (Hint: first identify each item as an Asset, Liability ,Cash Inflow or Cash Outflow):

Sheet 1. a Balance Sheet, including a line item showing Carol's overall Net Worth.
Sheet 2. a Cash Flow Statement, for a single month, including a line item showing Carol's overall Net Cash Flow.

Answer 1

Part 1 .

Balance Sheet Liablities Amount Assets Amount Personal Loan balance-5% 5,000 House 100,000 Mortgage 95,000 Car 20,000 Auto Loan balance 15,000 401K Balance 50,000 Capital (balancing figure) 56,500 Savings Balance 500 Checking Balance 1,000 Total 171,500 Total 171,500

part 2

cash flow statement

Slaliment of Carols. Cash flow Inflouis Carol salary $2000 $30 $60 $94 $796 Outflows Blomingdale Payment Visa payment Personal loan payment Mortgage pcument Blomingdale card Visa card Mastercard Auto payment Gym membership 4 262 $20 Gas Electric water Internet $ 100 $125 $ 60 $ 150 $50 $ 200 $250 $796 Phone Cellphone Food $165 Mortgage payment Car Insurance Lawn service Master card $100 $100 Net cash -1358 flow