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Personal Financial Planning

1. Creating Personal Financial Statements. Based on the procedures presented in the chapter, prepare your current personal balance sheet and a cash flow statement for the next month. (Obj. 3)

2. Calculating Balance Sheet Amounts. Based on the following data, compute the total assets, total liabilities, and net worth. (Obj. 3)
Liquid assets, $3,670
Investment assets, $8,340
Current liabilities, $2,670
Household assets, $89,890
Long-term liabilities, $76,230

3. Preparing a Personal Balance Sheet. Use the following items to prepare a balance sheet and a cash flow statement. Determine the total assets, total liabilities, net worth, total cash inflows, and total cash outflows. (Obj. 3)
Rent for the month, $650
Monthly take-home salary, $1,950
Cash in checking account, $450
Savings account balance, $1,890
Spending for food, $345
Balance of educational loan, $2,160
Current value of automobile, $7,800
Telephone bill paid for month, $65
Credit card balance, $235
Loan payment, $80
Auto insurance, $230
Household possessions, $3,400
Stereo equipment, $2,350
Payment for electricity, $90
Lunches/parking at work, $180
Donations, $70
Home computer, $1,500
Value of stock investment, $860
Clothing purchase, $110
Restaurant spending, $130

Solution Summary

The solution explains how to prepare a personal balance sheet and cash flow statement