Based on the information provided in the Phase 1 Packet on Blackboard you are to:

1 - Prepare the client's Amortization tables for any Loans. Clean up and properly Format the

2 - an analysis using the categories of financial ratios 1) Liquidity Ratios- Current Ratio , 2) Debt Ratios- Housing Ratio 2 (Broad), and 3) Ratios for Financial Security Goals -Investment Assets to Gross Pay, Savings Rate etc

3 - Provide a written explanation as to the results and significance of these ratio analyses, explained as if you were explaining it to the client. Include detailed recommendations about how they might improve any ratios that are not within their benchmark. Also, provide detailed recommendations as to how they might improve their cash Flow.

Assets we have - David and Briana Foster What we both own Checking - $3,000 Savings Account - $21,000 Stock Account $215,000 | inherited it from my Uncle 5 years ago when he died. I put Briana's name on it with me. We have personal stuff, if you want that: 2 used cars worth $60,000 total Our furniture and house items are probably worth $100,000 Briana's Stuff Briana is the only niece/granddaughter on her Mother's side of the family, so she keeps getting inherited jewelry every time an aunt dies. Our insurance company made us get it appraised. It's worth $50,000. Briana starting reading comic books when she was 8. She kept them all and they are in great shape. She is such a neat freak! Anyway, we also had those appraised last year, and they are worth $75,000! She has some mint condition X-men and Spiderman. Those are popular now. Briana has a small IRA rollover account from a place she used to work at. There is $28,000 in it. Landgrab Realty has a 401(k) plan, but Briana hasn't signed up for it. My (David) stuff I have a 401(k) account with Daisy Lark. Its worth $265,000 now. I put 10% of my income in it. I asked the HR person and they said I do get a match. Here is what they said, "The company matches 1% for the first 3% contributed by the employee and $1% for any contributions greater than 3%, up to a maximum of 5%." Briana's Dad set up 529 accounts or Micah and Lilly when they were born. Micah's has $7,500 in it and Lilly's has $5,500. He hasn't put any money in in a while. We don't put any in.ASSETS LIABILITIES AND NET WORTH Current Assets Current Liabilities Checking Account $3,000 Credit Card Balances $26,218 Savings Account $21,000 Total Current Liabilities $26,218 Total Current Assets $24,000 Long-Term Liabilities Investment Assets Mortgage Balance $279,884 Stock Account $215,000 Auto Loans $40,000 David's 401(k) $265,000 Total Long-Term Liabilities $319,884 Briana's IRA rollover $28,000 Total Liabilities $346,102 Micha's 529 $7,500 Total Net Worth $174,398 Lilly's 529 $5,000 Total Liabilities and Net Worth $520,500 Total Investment Assets $520,500 Personal Assets Cars $60,000 Furniture $100,00 Briana's Jewelry $50,000 Briana's comic book collection $75,000 Total Personal Assets $285,000 Total Assets $829,500The percentage of assets being provided by creditors. The percentage of total Depends on age. 20% for assets owned or paid for by young client and 90-100% client. for retirement age client. Debt to Total Debt Total Assets Total Assets As a person ages, this ratio should decline. Net Worth to Net Worth Total Assets Total Assets Ratios for Financial Security Goals Savings + The percentage of income 10 13% assuming the Savings Rate EmEloller Match saved towards a retirement client starts early, Gross Pay goal. ages 25-35. Depends on Age Investment Assets Investment A5Et5 + The progress towards 1 6 to 20 times pre- to Gross Pay Cash 8' Cash E nivalents a retirement goal. retirement income at Gross Pay retirement. Performance Ratios Return on I1 _ (10 + Savings) The growth rate ofa client's 8 _ 10W Investments investment assets. 0 Return on Assets A blended ngth 2 4% rate of all assets. The higher the better. This The growth rate of ratio is likely to become NW1 (NW0 + Savings) Worth NW0 net worth. smaller as the Client's net worth increases. Return on Net