Suzanne is a 28-year-old BYU graduate. She pays her bills on time, has managed to save a little in a mutual fund, and (with the help of her parents) managed a down payment on a condo. Assume that all her short-term and long-term liabilities are paid except for credit cards; she pays all expenses on her credit cards, and the balances given represent her average monthly balances. Note that her paycheck is net of taxes only and her average tax rate is 15% on gross earnings. Her gross salary = net salary / (1 – average tax rate).

Monthly paycheck, net	$3,000	Unpaid Visa bill	$500
Individual Stocks (total)	$4,500	Unpaid MasterCard bill	$245
Annual Medical expenses	$252	Monthly Mortgage payment	$600
Mutual Fund holdings (total)	$2,000	401k Retirment (total)	$4,500
Car payment, monthly	$265	Monthly Utilities	$275
Savings Account (total)	$2,500	Clothing expense, monthly	$45
Monthly tithes and offerings	$424	Monthly 401k Savings	$100
Checking account (total)	$825	Auto insurance, quarterly	$450
Inherited coin collection	$3,250	Condo appraised value	$65,000
Condo mortgage owed	$60,000	Food, monthly	$225
Auto (Kelly Blue Book)	$9,000	Furnishings	$5,500
Auto loan outstanding	$4,225	Other personal property	$8,000
Other expenses, monthly	$150	Average tax rate	15%

1.

Prepare a monthly income statement for Suzanne (using the better method).

Prepare a balance sheet for Suzanne.

Answer rating: 100% (QA)

Monthly Income Statement for Suzanne Income Amount Net Paycheck 3000 Total Income 3000 Expenses Amou... View the full answer