Question

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.

Rent for the month, $650Monthly take-home salary, $1,950Cash in checking account, $450Savings account balance, $1,890Spending for food, $345Balance of educational loan, $2,160Current value of automobile, $7,800Telephone bill paid for month, $65Credit card balance, $235Loan payment, $80Auto insurance, $230Household possessions, $3,400Stereo equipment, $2,350Payment for electricity, $90Lunches/parking at work, $180Donations to church, $70Home computer, $1,500Value of stock investment, $860Clothing purchase, $110Restaurant spending, $130

Answer 1

Answer:

Total Assets=$18,170     Networth=Assets-Liabilites=$15,855

Total Liabilties=$2,315         Cash Outflows =$3,925  

Cash Inflows=$0

Explanation:

Total Assets  

Checking Account   450.00  

Savings Account   1,890.00  

Automobile   7,800.00  

Loan payment   (80.00)

Household Possession   3,400.00  

Stereo Equipment   2,350.00  

Computer                 1,500.00  

Stock Investment         860.00  

                       18,170.00  

Total Liabilties  

Loan                  2,160.00  

Credit balance   235.00  

Loan payment   (80.00)

                    2,315.00  

Networth=$18,170-$2.315=$15,855

 Cash Outflows  

Rent   650.00  

Salaries   1,950.00  

Food   450.00  

telephone    65.00  

Insurance   230.00  

Electricity   90.00  

Lunch/Parking   180.00  

Donation              70.00  

Purchase             110.00  

Restaurant Spending   130.00  

                          3,925.00  

Cash Inflows=$0