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Personal Budget, Balance Sheet, and Cash Flow Statement

Choose a client or yourself. For confidentiality purposes, use a fictitious name.
Prepare a personal budget, balance sheet, and cash flow statement.
Write a memo that includes the following:

• A summary of the facts, including ages of the client, spouse, and dependents; educational background; income status of client and spouse; and two major concerns and goals.

• Summary of key items and findings from the personal budget, balance sheet, and cash flow statement.

• Recommendations and support for improving the financial situation

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Solution Preview

Without knowing the client or having information for yourself, I will provide a template for you to plug in the necessary figures:

Balance Sheet

Current Assets: Current Liabilities:

Cash on Hand Accounts Payable (short term)

Accounts Receivable (money owed short term) Accrued Expenses (what bills are outstanding and when to be paid)

Short term investments (CD's, T Bills, etc.) Short term loans (money owed to be paid within a year)

Other current assets (supplies, etc.)

Savings Accounts, Investment Accounts Other current liabilities (money borrowed from a friend or family member)

Long Term Assets: Long Term Liabilities:

Building (house or other property) Mortgage

Equipment ...

Solution Summary

Understanding where we are can allow us to determine the proper course of action for future financial decision making. This discussion provides a template and a road map for determining our own value, based upon listing assets, liabilities, net worth, and cash flow.