Case Link Question (8) Directions: Click the Case Link above and use the information provided in the Melissa Carter case to answer this question: Which of the following statements best describes Melissa Carter's coverage position? Melissa Carter's dependence on the continued successful operations of Carter Distributors, Inc. diminishes the strength of her coverage position. Melissa Carter's coverage position is barely adequate to meet total current liabilities, in the absence of regular income Melissa Carter's coverage position is unusually strong; her significant investment in marketable securities more than offsets her current liabilities Melissa Carter's coverage position is adequate to meet total current liabilities if her real estate investments and included Mark for review Submit Cemplete al blanks: ester 0. , or asee f aperserine TARILITIER& NET WORTH Shorl-lerm ard deman6 neies paatie fo basks and thers 1Sdh 1ex Cash ae hand and 40000 n basks (Sch, 1) 65000 guarenteed) Margin dest (Soh. 13) Listed securees (Sch 21 Unnsted secanities (Sch, 2) Apcouncs and nates receivatle (Sich, 4) TOTAL LIQUID ASSETS Residential real estate (Sch. 5) Non-residential real estate (Sch. 4) thes vear uspad tace Cch er carrent labiita lat telew 15000 4433000 S06,000 1.350 000 171 130 Residestial real estate mertaases (Sch 5) o-esdestial real entabe mortgages (Sth 4) Auto loans (ich 71 5.200 Cash value of fe insurance Cther laans and obigations (Sch. 12 Credt cards (Sch 13) Other list): Automabies (Sch. 7) Housahold fumishings & personal property Other assets (Sch. a &9) Retirement accaunts (40a10), Keogh, 1RA, etc.)x 24.000 100,000 LUNS985 5,526,015 SILITEES 200 0 TWORTH 6,612000 TOTAL ASSETS ARNUANCExPENSES Martgage paymests, residentai RE (5ch, 5) Hortgage payments, nan-reaid ch. 7, 10, 12, 13) S 314 70.75 52.S0 ANNUAL INCONE Salery 400000 BE (Sch 6) 1250 Interest credit card pay 29.200 Other lcan Dividends Required partnership comtributions Tasss: ncome, real estate, etc Inqurance premiums Residential real eatate income (Sch, 5) Non-residential real estate income (Sch, 6) Other business income (Sch, 3 and 8) Other recuring income (Sch. 9) Non-recurring or variable income 6000 5200 10/06/2019 120.000 335000 30000 Living expenses, etc. Almony, child suppart, separate maintenance Chartable contrbutions Other contractual obigations (tution, et.) Ocher (attach list) 10,000 Commissions and bonuses- 73.000 Other Capital gains, net of losoes cther TOTAL 566015 955450 TOTAL Erter Yes ar Ho GENERAL INPORHATION Are any assets pledged? Ust Homes, commercial real estabe, auto, jewelry Are you defendant in any sits or legal actionh Have you ever made a compostion settlement? Have you taken bankruptey? I yes, when? Are any assets held in trust? PERSONAL INFORMATION Business or occupation: Owner & President, Carter Distributors, In Partner or officer in other venture(s) (List): Caffeine Connections, Inc. Name(s) and age(s) of dependents Katie (11), Cliff (6) Yes No No No Yes Circumstances and potential liability Guarantor for various loans to Carter Distributors, Inc. Enter yes or No CONTINGENT LIABILETIESS As endorser, co-maker, or quarantor? Yes No Pending legal claims against you? Co-borrower's signature Borrower's signature 1/12/14 Date Melissa Caetr ham Mmai efe 2tt provit J0op Ho eary r atist wema serty beKoton Vakedsl 34Y STWE iel Cater aberns Ine veed 7- yai w Catone Coneties Ire wwpve Anncand Mitar taid 35man ta appca Take ka ww Jneat 10/06/2019 Balae of ate er areserty and reresaa hiary resadenc Quret ariat pemeis ushder 27 538UUE 13% Varation ore sel425 Malfinm Fane al real ete and rtooges pyable honew dasts enel ateat Sid EsOREIE tetore debt erice Cerent meet value Deie of reted Yeer e maMts gaynarts opety and Lisshelen Land and bakdag 512000e S00757 kased to Carter 12 58088 Marobark. S351000 Tastrilstons 10 McteCtei SUPPLEMENTARK SCHEDULES 7-a (Alah eprste a s F ry Sch. . LisbistienAuo da a sece mede Darrent aasce ofeelel marel 3NE Vileo C 20 Foed Esploe Veers to aurty ongar co 530000 543/00 Lieigen 57 Fine der 5350) so wsenhie perceninge Armeant rcaved lest vea Fatare anesa shosm n taY returp Esmm or Sthebew: vahue ef yer share Tye reomes inceTe Sth.9, E d Tricem Her strehet 4d14 e si E tret . e ,ts. Fatsre annuel Other seet er soarce of income Current markel velue recame reced Shw in tex returm m or 5eds Typs cene ast vear income Sch. 20. Liabitis t tnm noses tte dee ks and pl Parpese, camnante Colatea enges Cutate S4000X Name of le Titans 12/2104 leswrlny Sch 11 ialetin: Margin deat arigna ameunt Cadera Maturite Race PRNTmEnt tems Preent baiasce Name of lenger Sch 17 Liabstities 0ther sanS and tisations Arruuech Calatera Materity paymantse 10/06/2019 ace Present belasce Griginal ama Name of ienden Pad in f/s montsly? No Annaalged payments $5000 Sch, 11. Liabiaties Credit ardu Notes Rate 7.25% Presert balence S40 SL000 Credt limit 5200 Name of lender Capital Dne Visa Amenican Express used in place of cah Yes Case Link Question (8) Directions: Click the Case Link above and use the information provided in the Melissa Carter case to answer this question: Which of the following statements best describes Melissa Carter's coverage position? Melissa Carter's dependence on the continued successful operations of Carter Distributors, Inc. diminishes the strength of her coverage position. Melissa Carter's coverage position is barely adequate to meet total current liabilities, in the absence of regular income Melissa Carter's coverage position is unusually strong; her significant investment in marketable securities more than offsets her current liabilities Melissa Carter's coverage position is adequate to meet total current liabilities if her real estate investments and included Mark for review Submit Cemplete al blanks: ester 0. , or asee f aperserine TARILITIER& NET WORTH Shorl-lerm ard deman6 neies paatie fo basks and thers 1Sdh 1ex Cash ae hand and 40000 n basks (Sch, 1) 65000 guarenteed) Margin dest (Soh. 13) Listed securees (Sch 21 Unnsted secanities (Sch, 2) Apcouncs and nates receivatle (Sich, 4) TOTAL LIQUID ASSETS Residential real estate (Sch. 5) Non-residential real estate (Sch. 4) thes vear uspad tace Cch er carrent labiita lat telew 15000 4433000 S06,000 1.350 000 171 130 Residestial real estate mertaases (Sch 5) o-esdestial real entabe mortgages (Sth 4) Auto loans (ich 71 5.200 Cash value of fe insurance Cther laans and obigations (Sch. 12 Credt cards (Sch 13) Other list): Automabies (Sch. 7) Housahold fumishings & personal property Other assets (Sch. a &9) Retirement accaunts (40a10), Keogh, 1RA, etc.)x 24.000 100,000 LUNS985 5,526,015 SILITEES 200 0 TWORTH 6,612000 TOTAL ASSETS ARNUANCExPENSES Martgage paymests, residentai RE (5ch, 5) Hortgage payments, nan-reaid ch. 7, 10, 12, 13) S 314 70.75 52.S0 ANNUAL INCONE Salery 400000 BE (Sch 6) 1250 Interest credit card pay 29.200 Other lcan Dividends Required partnership comtributions Tasss: ncome, real estate, etc Inqurance premiums Residential real eatate income (Sch, 5) Non-residential real estate income (Sch, 6) Other business income (Sch, 3 and 8) Other recuring income (Sch. 9) Non-recurring or variable income 6000 5200 10/06/2019 120.000 335000 30000 Living expenses, etc. Almony, child suppart, separate maintenance Chartable contrbutions Other contractual obigations (tution, et.) Ocher (attach list) 10,000 Commissions and bonuses- 73.000 Other Capital gains, net of losoes cther TOTAL 566015 955450 TOTAL Erter Yes ar Ho GENERAL INPORHATION Are any assets pledged? Ust Homes, commercial real estabe, auto, jewelry Are you defendant in any sits or legal actionh Have you ever made a compostion settlement? Have you taken bankruptey? I yes, when? Are any assets held in trust? PERSONAL INFORMATION Business or occupation: Owner & President, Carter Distributors, In Partner or officer in other venture(s) (List): Caffeine Connections, Inc. Name(s) and age(s) of dependents Katie (11), Cliff (6) Yes No No No Yes Circumstances and potential liability Guarantor for various loans to Carter Distributors, Inc. Enter yes or No CONTINGENT LIABILETIESS As endorser, co-maker, or quarantor? Yes No Pending legal claims against you? Co-borrower's signature Borrower's signature 1/12/14 Date Melissa Caetr ham Mmai efe 2tt provit J0op Ho eary r atist wema serty beKoton Vakedsl 34Y STWE iel Cater aberns Ine veed 7- yai w Catone Coneties Ire wwpve Anncand Mitar taid 35man ta appca Take ka ww Jneat 10/06/2019 Balae of ate er areserty and reresaa hiary resadenc Quret ariat pemeis ushder 27 538UUE 13% Varation ore sel425 Malfinm Fane al real ete and rtooges pyable honew dasts enel ateat Sid EsOREIE tetore debt erice Cerent meet value Deie of reted Yeer e maMts gaynarts opety and Lisshelen Land and bakdag 512000e S00757 kased to Carter 12 58088 Marobark. S351000 Tastrilstons 10 McteCtei SUPPLEMENTARK SCHEDULES 7-a (Alah eprste a s F ry Sch. . LisbistienAuo da a sece mede Darrent aasce ofeelel marel 3NE Vileo C 20 Foed Esploe Veers to aurty ongar co 530000 543/00 Lieigen 57 Fine der 5350) so wsenhie perceninge Armeant rcaved lest vea Fatare anesa shosm n taY returp Esmm or Sthebew: vahue ef yer share Tye reomes inceTe Sth.9, E d Tricem Her strehet 4d14 e si E tret . e ,ts. Fatsre annuel Other seet er soarce of income Current markel velue recame reced Shw in tex returm m or 5eds Typs cene ast vear income Sch. 20. Liabitis t tnm noses tte dee ks and pl Parpese, camnante Colatea enges Cutate S4000X Name of le Titans 12/2104 leswrlny Sch 11 ialetin: Margin deat arigna ameunt Cadera Maturite Race PRNTmEnt tems Preent baiasce Name of lenger Sch 17 Liabstities 0ther sanS and tisations Arruuech Calatera Materity paymantse 10/06/2019 ace Present belasce Griginal ama Name of ienden Pad in f/s montsly? No Annaalged payments $5000 Sch, 11. Liabiaties Credit ardu Notes Rate 7.25% Presert balence S40 SL000 Credt limit 5200 Name of lender Capital Dne Visa Amenican Express used in place of cah Yes