Julia and Adrian Simmons are recent graduates and newlyweds. Adrian is an IT analyst at Delliotes earning
Question:
Julia and Adrian Simmons are recent graduates and newlyweds. Adrian is an IT analyst at Delliotes earning $110,000 gross per year and Julia is a marketing manager at After pay making $140,000 gross. Both employers pay 10% super on top of their salaries.
The Simmons live in the Melbourne CBD as that is where their offices are, however, they are currently in lockdown due to Covid. They rent their 2-bedroom apartment in Carlton for $1300 per week and love their lifestyle. Julia and Adrian want to work towards buying their first home and starting a family, but they are unsure where to start to ensure their financial security and have come to see you for advice.
Their Financial information is shown below and in AUD:
Cash at Bank | $ 17,000 |
Term Deposit | 35,000 |
Share Portfolio | 10,000 |
Contents Student Loans Julia | 50,000 50,000 |
Student Loans Adrain | 90,000 |
Superannuation Fund Julia Superannuation Fund Adrain Credit Cards Balance Owing General Household Expenses | 25,000 28,000 13,000 60,000 per annum |
Entertainment | 500 per week |
Rent | 1300 per week |
Private Health Insurance | 300 per month |
Credit Card Payment | 300 per month |
Income: Julia’s gross income Adrians’ Gross Income | 110,000 140,000 |
Julia Tax & Medicare Adrian Tax & Medicare Julia Student Loan Payment Adrian Student Loan Payment | 30,397 38,877 8,800 14,000 |
You are required to prepare the following:
- Prepare a personal monthly cash flow statement for Mr. and Mrs. Simmons
- Prepare their personal balance sheet including their net worth
- Calculate the debt service, savings, liquidity and solvency ratios.
Business Statistics a decision making approach
ISBN: 978-0133021844
9th edition
Authors: David F. Groebner, Patrick W. Shannon, Phillip C. Fry