Bernard Blanger has been working full-time for the last 4 years. Last year, a close family...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Bernard Bélanger has been working full-time for the last 4 years. Last year, a close family friend, "Aunt Maria", suddenly passed away and left him an inheritance of $75,000. Bernard used the money, as a down payment, to buy a townhouse at the end of 2021 for $375,000. He obtained a 4.50% rate (compounded semi-annually), makes monthly payments, and used a 25- year amortization. The monthly blended mortgage payment is $1,660.42 due at the end of each month. As of February 28, 2022 Bernard has two months of accrued property taxes at $300 per month. Currently his utility bills for the month are unpaid. His utility bills are on a monthly budget plan and Bernard set them up with automatic pre-authorized payments (PAP) from his chequing account on the 5 of each month following. His $2,400/year car insurance and his house insurance are also paid using PAP in equal monthly installments on the first of each month. Although he is usually good at keeping receipts, he does have on average $200 miscellaneous cash withdrawals that he simply refers to as "other." With respect to debt, Bernard has two credit cards. He uses them for clothing, groceries and gas for his car and to collect travel points. Bernard pays them in full each month, usually around the 15- of the month following, so as not to carry a balance. In addition to his credit cards and mortgage, he also has a car loan. Bernard has no student debt. As far as the future, Bernard has a savings account with $1,900 in it that he uses for emergencies, and his vacation fund, and he has a chequing account with a current balance of $925. There is an RRSP account at his bank and some stocks he purchased for long-term investment purposes that his Aunt Maria helped him establish over the past few years. Bernard currently takes home $3,900 every month. Having Maria pass away started to make Bernard think about his future. Although he did graduate with a university degree, he does not have a high level of personal finance knowledge. He started to fill in a cash flow and net worth statement but needs your help to complete it. a. b. Income Monthly paycheque, net Expenses Mortgage Property taxes Clothing Groceries Question 3) Current Ratio d. Savings Ratio CASHFLOW STATEMENT Gas for Car Cell Phone with internet Netflix Car loan Electricity bill Natural gas Water and sewer Home insurance Car insurance Other Liquidity Ratio Debt-to-Asset Ratio Total income Net Cash Flows Liquid Assets Current Liabilities Liquid Assets Monthly Living Expenses Total Liabilities Total Assets $ $ $ $ $ $ Savings Disposable income SSSS Total Expenses $ -$ $ $ $ $ Monthly 75.00 300.00 150.00 210.00 14.99 658.00 40.00 72.00 45.00 60.00 1,624.99 1,624.99 worv/0 DIV/0! #DIV/0! DIV/0! 1 23 3 4 5 16 Analysis Guideance 17 Analysis Guideance 16 Analysis Guideance 19 Analysis Guideance NET WORTH STATEMENT @ Feb 28, 2022 ASSETS Liquid Assets Savings account Chequing account Household Assets Car FMV Total quid assets $ $ $ $ Total household assets $ Furnishings Other personal property Investment Assets Stocks $ RRSP (3 yr non-redeemable GICS) S Home Total investment assets $ S Total Assets LIABILITIES Current Liabilities Mortgage Car iban Total current abilities S Long-term Liabilities $ Total long-term labilities $ Total Liabilities NET WORTH $ $ 8,400.00 3,700.00 2,200.00 14,300.00 1,500.00 9,500.00 11,000.00 25,300.00 9,200.00 9,200.00 9,200.00 16,100.00 6 7 9 10 11 12 13 14 15 Bernard Bélanger has been working full-time for the last 4 years. Last year, a close family friend, "Aunt Maria", suddenly passed away and left him an inheritance of $75,000. Bernard used the money, as a down payment, to buy a townhouse at the end of 2021 for $375,000. He obtained a 4.50% rate (compounded semi-annually), makes monthly payments, and used a 25- year amortization. The monthly blended mortgage payment is $1,660.42 due at the end of each month. As of February 28, 2022 Bernard has two months of accrued property taxes at $300 per month. Currently his utility bills for the month are unpaid. His utility bills are on a monthly budget plan and Bernard set them up with automatic pre-authorized payments (PAP) from his chequing account on the 5 of each month following. His $2,400/year car insurance and his house insurance are also paid using PAP in equal monthly installments on the first of each month. Although he is usually good at keeping receipts, he does have on average $200 miscellaneous cash withdrawals that he simply refers to as "other." With respect to debt, Bernard has two credit cards. He uses them for clothing, groceries and gas for his car and to collect travel points. Bernard pays them in full each month, usually around the 15- of the month following, so as not to carry a balance. In addition to his credit cards and mortgage, he also has a car loan. Bernard has no student debt. As far as the future, Bernard has a savings account with $1,900 in it that he uses for emergencies, and his vacation fund, and he has a chequing account with a current balance of $925. There is an RRSP account at his bank and some stocks he purchased for long-term investment purposes that his Aunt Maria helped him establish over the past few years. Bernard currently takes home $3,900 every month. Having Maria pass away started to make Bernard think about his future. Although he did graduate with a university degree, he does not have a high level of personal finance knowledge. He started to fill in a cash flow and net worth statement but needs your help to complete it. a. b. Income Monthly paycheque, net Expenses Mortgage Property taxes Clothing Groceries Question 3) Current Ratio d. Savings Ratio CASHFLOW STATEMENT Gas for Car Cell Phone with internet Netflix Car loan Electricity bill Natural gas Water and sewer Home insurance Car insurance Other Liquidity Ratio Debt-to-Asset Ratio Total income Net Cash Flows Liquid Assets Current Liabilities Liquid Assets Monthly Living Expenses Total Liabilities Total Assets $ $ $ $ $ $ Savings Disposable income SSSS Total Expenses $ -$ $ $ $ $ Monthly 75.00 300.00 150.00 210.00 14.99 658.00 40.00 72.00 45.00 60.00 1,624.99 1,624.99 worv/0 DIV/0! #DIV/0! DIV/0! 1 23 3 4 5 16 Analysis Guideance 17 Analysis Guideance 16 Analysis Guideance 19 Analysis Guideance NET WORTH STATEMENT @ Feb 28, 2022 ASSETS Liquid Assets Savings account Chequing account Household Assets Car FMV Total quid assets $ $ $ $ Total household assets $ Furnishings Other personal property Investment Assets Stocks $ RRSP (3 yr non-redeemable GICS) S Home Total investment assets $ S Total Assets LIABILITIES Current Liabilities Mortgage Car iban Total current abilities S Long-term Liabilities $ Total long-term labilities $ Total Liabilities NET WORTH $ $ 8,400.00 3,700.00 2,200.00 14,300.00 1,500.00 9,500.00 11,000.00 25,300.00 9,200.00 9,200.00 9,200.00 16,100.00 6 7 9 10 11 12 13 14 15
Expert Answer:
Related Book For
Business Ethics A Stakeholder And Issues Management Approach
ISBN: 9781523091546
7th Edition
Authors: Joseph W. Weiss
Posted Date:
Students also viewed these finance questions
-
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
I recently heard my neighbor discussing how one of our other neighbors lost his job. My neighbor assumed that the person who lost his job was probably lazy or not smart enough for the job, without...
-
Use the information in questions 13.2 and 13.3 as well as the following information to compute the WACC for Quarri Industries. In addition to common stock, Quarri has 500,000 preferred shares...
-
How may overly strict government regulation of environmental hazards be self-defeating? Can you think of any specific examples of laws intended to benefit public health that may do more harm than...
-
The trial balance for BFF Systems, Inc., at March 15, 2010, follows: During the remainder of March, BFF Systems, Inc., completed the following transactions: Requirements 1. Journalize the...
-
Use the information in RES-7. Calculate Uncle Butchs Hunting Supply Shops ending inventory' using the retail inventory method under the lower of average cost or market assumption. Round the...
-
The amount transferred from Work in Process to Finished Goods under a job-order costing system is the sum of the costs charged to all jobs: started in process during the period. in process during the...
-
1. a. How much did the materials cost per unit change between June and July? b. How much did the conversion cost per unit change between June and July? 2. Which is the optimal choice of material and...
-
Based on the most recent figures, which of the following categories of industry classifications has the greatest profits? Financial or nonfinancial The most recent data is for the third quarter of...
-
Review the following Relvant Law (Uniform Commercial Code section) and read the list of facts that follows. Make a list of the legally significant facts based on the statute. Next to each fact, list...
-
Neptune Company has developed a small inflatable toy that it is anxious to introduce to its customers. The company's Marketing Department estimates that demand for the new toy will range between...
-
Mr. C is a friend of Ms. E. Ms. E works at a restaurant. Mr. C tells Ms. E that he owes money to drug dealers and wants help with getting $2,000.00 within the next few days. Ms. E tells him that by...
-
Create a real-time collaborative code editor that allows multiple users to edit the same document simultaneously. The editor should highlight syntax for at least three different programming languages...
-
First, the case of Vigo v Canada (Citizenship and Immigration), 2018 CanLII 129985 (CA IRB (IAD)) must be read. Then 10 following questions must be answered as a "briefing case" in 300 words or so....
-
Q 14 (a) One gram of uranium will produce energy equivalent to approximately O a. 10 ton of high-grade coal Ob. 100 ton of high-grade coal O c. 4.5 ton of high-grade coal Od 1 ton of high-grade coal...
-
The area of a rectangle is 30 cm 2 and its perimeter is 26 cm. Find the length and width of the rectangle.
-
What are some of the problems characteristic of cultural relativism? Offer an example in the news of a company that has acted unethically according to the perspective of cultural relativism.
-
Should corporate managers prevent whistle-blowing? Why or why not? Explain.
-
Identify some benefits of using a stakeholder approach in ethical decision making. How would using a stakeholder management approach help you plan and/or solve an ethical issue in your working life?...
-
Prove that the operating and y = x lines for binary flash distillation intersect at y = x = z.
-
Choosing to use V/F to develop the Rachford-Rice equation is conventional but arbitrary. We could also use L/F, the fraction remaining liquid, as the trial variable. Develop the Rachford-Rice...
-
Plot Eq. (2-39a) vs. V/F for Example 2-2 to illustrate that convergence is not as linear as the Rachford-Rice equation. Eq (2-39a) Example 2-2 A flash chamber operating at 50C and 200 kPa is...
Study smarter with the SolutionInn App