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Personal Balance Sheet, Projected Income Statement

Prepare a personal balance sheet and projected income statement; explain financial statement relationships.
a. Prepare a personal balance sheet for yourself as of today. Work at identifying your assets and liabilities; use rough estimates for amounts.
b. Prepare a projected income statement for yourself for the current semester. Work at identifying your revenues and expenses, again using rough estimates for amounts.
c. Explain how your projected income statement for the semester is likely to impact your financial position (i.e., balance sheet) at the end of the semester. (Note: You are not required to prepare a projected balance sheet.)
d. Identify the major sources (and uses) of cash that you are expecting to receive (and spend) this semester. (Note: You are not required to prepare a projected statement of cash flows.)
e. Give three possible explanations why a full-time college student might incur a substantial net loss during the fall semester of her junior year, yet have more cash at the end of the semester than she had at the beginning.

Solution Preview

Please see attached, in Excel, to get readable formatting. Click in cells to see computations.

Balance Sheet
ASSETS Current Projected
Cash $1,200.00 $1,300.00 < -- cash is $100 higher because I didn't spend all my salary
Guns $2,000.00 $2,000.00 no change
Car $8,000.00 $8,000.00 no change
Jewelry $1,000.00 $1,000.00 no change
401(k) savings plan $12,000.00 $12,200.00 < -- goes up and down with market and with ...

Solution Summary

Please see attached, in Excel, for estimates based on my experience. Click in cells to see computations. A paragraph explains the net loss and sources of cash.

$2.19