Construct Financial Statements. Thomas Green has been a retail salesclerk for six years. At age 35,...

    

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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 S400 per month for child support from Amanda's mother. Thomas invests $100 each month (S50 in his mutual fund and S50 in U.S. savings bonds). Using the following information, construct a balance sheet and a cash-flow statement for Thomas. Amount $3,000 ASSETS Vested retirement benefits (no employee contribution) Money market account (includes $150 of interest earned last year) Mutual fund (includes $200 of reinvested dividend income from last year) Checking account Personal property Automobile U.S. savings bonds 5,000 4,000 1,000 5,000 3,000 3,000 Outstanding Balance LIABILITIES Dental bill (pays $25 per month and is included in uninsured medical/dental) Visa (pays $100 per month) Student loan (pays $100 per month) $ 450 1,500 7,500 ANNUAL EXPENSES Auto insurance Rent Amount 5 780 9,100 1,200 680 360 Utilities Phone Cable Food Uninsured medical/dental 3,000 1,000 ANNUAL EXPENSES Dry cleaning Personal care Gas, maintenance, license Clothes Amount 480 420 2,120 500 Entertainment Vacations/visitation travel Child care 1,700 1,300 3,820 400 Gifts Miscellaneous 300 Taxes 4,600 2,440 Health insurance 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 S400 per month for child support from Amanda's mother. Thomas invests $100 each month (S50 in his mutual fund and S50 in U.S. savings bonds). Using the following information, construct a balance sheet and a cash-flow statement for Thomas. Amount $3,000 ASSETS Vested retirement benefits (no employee contribution) Money market account (includes $150 of interest earned last year) Mutual fund (includes $200 of reinvested dividend income from last year) Checking account Personal property Automobile U.S. savings bonds 5,000 4,000 1,000 5,000 3,000 3,000 Outstanding Balance LIABILITIES Dental bill (pays $25 per month and is included in uninsured medical/dental) Visa (pays $100 per month) Student loan (pays $100 per month) $ 450 1,500 7,500 ANNUAL EXPENSES Auto insurance Rent Amount 5 780 9,100 1,200 680 360 Utilities Phone Cable Food Uninsured medical/dental 3,000 1,000 ANNUAL EXPENSES Dry cleaning Personal care Gas, maintenance, license Clothes Amount 480 420 2,120 500 Entertainment Vacations/visitation travel Child care 1,700 1,300 3,820 400 Gifts Miscellaneous 300 Taxes 4,600 2,440 Health insurance

Answer rating: 100% (QA)

Explanation Balance Sheet Assets Vested Retirement Benefits 3000 Money market accounts 5000 Mu... View the full answer