1 (4 points). Based on the information in Chapter 2 and 3, answer: 1) Use your own language to define balance sheet, cash flow statement and budget (each with one sentence); 2) What are key items of balance sheet, cash flow statement, and budget. For example, total asset is a key term in balance sheet; 3) Which financial statement refers to the situation of a particular day and which refers to the situation of a timer period; 4) Do you use these financial statements in your life and why; and 5) Identify a person in this class as your study partner since you will help each other for coursework. If you need me to assign a partner for you, please send me an email and ask. What is your partners name?

2 (4 points). Last week, you are asked to start a project to create a financial plan for a hypothesized person who has similar backgrounds as yours. You will ask to add more information to this plan each week. This week, please add following information to the plan file you started last week: Budget Prepare an annual budget for this person in an Excel file. You may use the Assignment 1s template file for this. In Excel file, you can always remove any unused items and add any new items based on your needs. Please use pre-tax annual income in the budget. At this stage, you may add any numbers you know such as income and estimate other numbers you are not sure now. You can revise this budget every week after more information is available. Make sure that net cash flow is 0, which is an indicator of good money management behavior. In the plan file, report if you have created an Excel file for the budget; and what are this persons total income, total expense, and net cash flow. Also discuss what are possible budgeting related issues faced by this person.