In this lesson you will practice creating a balance sheet and cash

In this lesson you will practice creating a balance sheet and cash flow statement. You will apply this experience to your own financial statements.

Your balance sheet should look similar to the one found on page 74 of your textbook (Table 3-2). Your cash flow statement should look similar to the one found on page 77 (Table 3-3) of your textbook. For the balance sheet you should have between 3-4 columns, for the cash flow statement, you should have 3 columns.

**Hint: The far right column on each sheet is a percentage. Did you figure out where are they getting that percentage from?

On the balance sheet, your total assets represents the 100% baseline, so (look on page 74) the total assets were $372, 620→ $372,620/$372,620= 100%. Now we take each individual asset and divide it by $372,620. For instance, cash on hand was 260→ 260/372,620= 0.0006977, move the decimal place twice (because in order to find a percent we need to multiply the number by 100) and that gives you 0.07%; cash on hand represents 0.07% of the total assets.

This also applies to the liabilities on the balance sheet. All of the individual liabilities are divided by the total liabilities ($372,620). For instance, the dentist bill due was 120→ 120/372,620 is 0.000322, move the decimal place twice and you have 0.03%; the dentist bill represents 0.03% of the total liabilities.

Now for the cash flow statement. It is just like the balance sheet in that we are going to use a number as our baseline. In the income section, it is the total income that represents our 100%. See page 77 (Table 3-3); all of our individual income figures are going to be divided by the total income. For instance, total income is $89,000: Victor’s gross salary is 63,180→ 63,180/89,000= 0.70988, move the decimal places twice and Victor’s gross salary represents 70.99% of the total income.

In the expenditures section, the total expenses represents our 100% baseline. All of the individual expenditures will be divided by the total expenses figure. In this case, the total expenses is $89,000. The food expense in this statement is 4,900→ 4,900/89,000= 0.05505, move the decimal place twice and the food expense represents 5.51% of the total expenses.

**Complete problem 5 below which is taken from the Do the Math exercises on page 97 of your textbook. Create a balance sheet by using tables in Word or by using an Excel spreadsheet.

Construct Financial Statements. Thomas Green has been a retail salesclerk for six years. At age 35, he is divorced with one child, Amanda, age 7. Thomas’s salary is $36,000 per year. He regularly receives $400 per month for child support from Amanda’s mother. Thomas invests $100 each month ($50 in his mutual fund and $50 in U.S. savings bonds). Using the following information, construct a balance sheet and a cash-flow statement for Thomas.

ASSETS Amount
Vested retirement benefits (no employee contribution) $3,000
Money market account (includes $150 of interest earned last year) 5,000
Mutual fund (includes $200 of reinvested dividend income from last year) 4,000
Checking account 1,000
Personal property 5,000
Automobile 3,000
U.S. savings bonds 3,000

 

LIABILITIES Outstanding Balance
Dental bill (pays $25 per month and is included in uninsured medical/dental) $ 450
Visa (pays $100 per month) 1,500
Student loan (pays $100 per month) 7,500

 

ANNUAL EXPENSES Amount
Auto insurance $780
Rent 9,100
Utilities 1,200
Phone 680
Cable 360
Food 3,000
Uninsured medical/dental 1,000

 

ANNUAL EXPENSES Amount
Dry cleaning $480
Personal care  420
Gas, maintenance, license 2,120
Clothes 500
Entertainment 1,700
Vacations/visitation travel 1,300
Child care 3,820
Gifts 400
Miscellaneous 300
Taxes 4,600
Health insurance 2,440

For additional assistance completing this week’s assignment, review the following study guide:  Week 2 Study Guide.

 

Garman, E. T., & Forgue, R. E. (2015). Personal Finance (12th ed.).Mason, OH: Cengage Learning.

 
Semester Papers
Calculate your paper price
Pages (550 words)
Approximate price: -

Why Work with Us

Top Quality and Well-Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

Professional and Experienced Academic Writers

We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.

Free Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.

Prompt Delivery and 100% Money-Back-Guarantee

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.

24/7 Customer Support

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.

Essays

Essay Writing Service

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.

Admissions

Admission Essays & Business Writing Help

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.

Reviews

Editing Support

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.

Reviews

Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.