# Anne works full time and earns $3,475 per month before taxes and other payroll deductions. Anne also

## Question:

Anne works full time and earns $3,475 per month ** before taxes and other payroll deductions.** Anne also works a part-time job on the weekends. Anne earns $800 per month (before payroll deductions) from her part-time job. Anne’s income taxes and other payroll deductions are $750 per month, in total, for both jobs. Anne earned $100 in interest in her savings account in September 2023.

A summary of Anne’s assets and liabilities on September 30^{th} , 2023 were:

Liquid Assets: $45,000

Total Assets: $375,000

Current Liabilities: $85,000

Total Liabilities: $180,000

Anne wants to obtain a better understanding of her expenses and so decided to track them on a spreadsheet for the month of September.

A copy of the spreadsheet is included below.

Expense For the Month of September, 2023 | Amount ($) |

Rent | 1,200 |

Rogers Cable | 175 |

Hydro/Electricity | 100 |

Water | 155 |

Cell Phone | 110 |

Food/Groceries | 500 |

Car Expenses (Gas, insurance, etc.) | 350 |

Medical Insurance | 200 |

Clothing/Personal Items | 575 |

Gym Membership | 100 |

Entertainment Expense | 350 |

Monthly Living Expenses | 3,815 |

__REQUIRED:__

- Using the information above, calculate Anne’s Net Cash Flow for the month of September 2023.
.*Show your detailed calculation***(11 Marks)** - What can you conclude from Anne’s Cash Flow Statement for September? Provide two conclusions about Anne’s cash flow.
**(4 Marks)**

__ __

__PART II Ratio Analysis (Out of 9____ Marks) __

Use the information in Part I above to:

- calculate the following financial ratios for Anne’s account
**(6 Marks):** - Current Ratio
- Liquidity Ratio
- Debt-to-Asset Ratio
- Explain the results of each of the ratio calculations above.
**(3 Marks)**

**Related Book For**

## Income Tax Fundamentals 2013

ISBN: 9781285586618

31st Edition

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill