Question

Money! Ilanagemell strategy: Financial statements and Budgeting Jamie Lee, age 25, Nowa busy fulltime college student and part-time baker clerk, has been trying to organize all of her priorities, including her budget. She has been wondering if she is allocating enough of her income toward salings, which, which includes accumulating enough money Poward the & 9,000 down payment she needs to achieve her dream and open a cupcake cafe. Samie Lee has been making regular deposits to her regular and emergency Saving's account. She would really like to sit down and get a clearer picture of how much she is spending on Various expenses, including rent utilities and entertainment, and how her debt compares to her Savings and assets. She realizes that she must stay on track and keep a detailed budget se she is forealize her dream of beiny Self-employed after colleg graduation.. Current Financial Situation. Assets: Chiaccount: 81250 Liabilities Emergency funds from Student Loan: $ 5400 Saving account: $3100 Credit Card balance $400 Car: $4006 Income: Gross mothly Savings: Salary: $21.26 Regular Savings: $150 Net Monthly salary: $1,560 Rainy day Savings: $25

Answer 1

1. BalanceSheet
BALANCE SHEET
LIABILITIES			ASSETS
	$			$
Student Loan	5400		CK Account	1250
			Savings account	3100
			Car	4000
Credit Card Balance	400
	5400			8350
Note: Balance sheet not tallied due to missing information and prepared based on the
information available
2 Debt Ratio
Monthly debts/Gross income*100
670/2125*100
31.53%
Yes Jamie Lee's Liabilities and Net worth relationship is affordable
3 Savings Ratio
Savings/ Disposable income (Net Salary + other savings)
1065/1735*100
61.38%
Yes her savings is pretty good to achieve her dream
4. Budget allocation
EXPENSES			INCOME
	$			$
Rent	275		Net Salary	1560
Utility	125		Regular savings	150
Food	120		Rainy day savings	25
Gas/ Maintenance	100
Credit Card Payment	50
Surplus/Savings carried to balance sheet	1065
	1735			1735
Yes, Jamie Lee is within the parameters as student