4. Balance sheet Net worth and interpreting the data The following is a partial balance sheet for Mark and Pam Sigo. Complete the balance sheet by determining their total assets, total current liabilities long-term liabilities, and net worth Balance Sheet Name(s): Mark and Pam Sigo Date: December 31, 2012 Assets Liabilities and Net Worth Liquid Assets Current Liabilities Electric Cash $246.45 $394.05 Checking 271.10 Water 168.88 308.06 Insurance premiums Savings 281.46 Total Liquid Assets: $825.61 1,012.50 Taxes Mortgage 750.00 Investments Auto 844.40 Retirement funds, $1,063.13 MasterCard 731.81 IRA Total Investments: $1,063.13 Total Current $4,183.100 Liabilities: Real Property Long-Term Liabilities $145,800.00 Primary residence $36,000.00 Primary residence mortgage $145,800.00 Total Long-Term Total Real $36,000.000 Property: Liabilities: Total Long-Term Total Real $145,800.00 $36,000.000 Liabilities: Property: Personal Property Honda Pilot $11,495.00 Total Personal $11,495.00 Property: (2) Total Liabilities: $40,183.100 Net Worth (1) - (2): (1) Total $159,183.740 $119,000.640 Assets: Total Liabilities and Net $199,366.840 Worth: Based on the completed balance sheet, the Sigos' net worth is $119,000.640 It isn't just the preparation of a balance sheet but the interpretation of the data that can reveal a family's financial condition. Mark and Pam Sigo are both age 44. Using data from the 2012 Federal Reserve Bulletin (shown) and the Sigos' balance sheet, what conclusions can you draw? With their balance sheet in place, Mark and Pam can compare their total liabilities to their total assets to generate a more realistic view of their current wealth position. The Federal Reserve Bulletin provides data on median net worth, broken down by age brackets. the median net worth for their age group. Based on the Federal Reserve Bulletin data, the Sigos are above Their home would be considered their dominant asset. Based on their liabilities, it does not appear that they have adequate liquid assets to meet their bill payments and to cover any small, unexpected expenses Their balance sheet lists their house at 8% higher than the purchase price. The equity in their home is $ Grade It Now Save & Continue Continue without saving 4. Balance sheet Net worth and interpreting the data The following is a partial balance sheet for Mark and Pam Sigo. Complete the balance sheet by determining their total assets, total current liabilities long-term liabilities, and net worth Balance Sheet Name(s): Mark and Pam Sigo Date: December 31, 2012 Assets Liabilities and Net Worth Liquid Assets Current Liabilities Electric Cash $246.45 $394.05 Checking 271.10 Water 168.88 308.06 Insurance premiums Savings 281.46 Total Liquid Assets: $825.61 1,012.50 Taxes Mortgage 750.00 Investments Auto 844.40 Retirement funds, $1,063.13 MasterCard 731.81 IRA Total Investments: $1,063.13 Total Current $4,183.100 Liabilities: Real Property Long-Term Liabilities $145,800.00 Primary residence $36,000.00 Primary residence mortgage $145,800.00 Total Long-Term Total Real $36,000.000 Property: Liabilities: Total Long-Term Total Real $145,800.00 $36,000.000 Liabilities: Property: Personal Property Honda Pilot $11,495.00 Total Personal $11,495.00 Property: (2) Total Liabilities: $40,183.100 Net Worth (1) - (2): (1) Total $159,183.740 $119,000.640 Assets: Total Liabilities and Net $199,366.840 Worth: Based on the completed balance sheet, the Sigos' net worth is $119,000.640 It isn't just the preparation of a balance sheet but the interpretation of the data that can reveal a family's financial condition. Mark and Pam Sigo are both age 44. Using data from the 2012 Federal Reserve Bulletin (shown) and the Sigos' balance sheet, what conclusions can you draw? With their balance sheet in place, Mark and Pam can compare their total liabilities to their total assets to generate a more realistic view of their current wealth position. The Federal Reserve Bulletin provides data on median net worth, broken down by age brackets. the median net worth for their age group. Based on the Federal Reserve Bulletin data, the Sigos are above Their home would be considered their dominant asset. Based on their liabilities, it does not appear that they have adequate liquid assets to meet their bill payments and to cover any small, unexpected expenses Their balance sheet lists their house at 8% higher than the purchase price. The equity in their home is $ Grade It Now Save & Continue Continue without saving