1. Based on the following data, compute the total assets, total liabilities, and net worth.

Liquid assets, $4,670 Household assets, $93,780

Investment assets, $26,910 Long-term liabilities, $76,230

Current liabilities, $2,670

2. 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, $650

Monthly take-home salary, $1,950

Cash in checking account, $450

Savings account balance, $1,890

Spending for food, $345

Balance of educational loan, $2,160

Current value of automobile, $7,800

Telephone bill paid for month, $65

Credit card balance, $235

Loan payment, $80

Auto insurance, $230

Household possessions, $3,400

Stereo equipment, $2,350

Payment for electricity, $90

Lunches/parking at work, $180

Donations, $70

Home computer, $1,500

Value of stock investment, $860

Clothing purchase, $110

Restaurant spending, $130

3. For each of the following situations, compute the missing amount.

a. Assets $45,000; liabilities $12,600; net worth $ _____.

b. Assets $78,980; liabilities $ _____ ; net worth $13,700.

c. Assets $44,280; liabilities $12,965; net worth $ _____.

d. Assets $ _____; liabilities $38,345; net worth $53,795.

4. The Fram family has liabilities of $128,000 and a net worth of $340,000. What is their debt ratio? How would you assess this?

5. Fran Bowen created the following budget:

Food, $350 Clothing, $100

Transportation, $320 Personal expenses and recreation, $275

Housing, $950

She actually spent $298 for food, $337 for transportation, $982 for housing, $134 for clothing, and

$231 for personal expenses and recreation. Calculate the variance for each of these categories, and

indicate whether it was a deficit or surplus.