CHAPTER 2 ASSIGNMENT Your client is having trouble figuring out where all her money goes each month. Here is her financial information for you to review:

MONTHLY VISA BILL $355*

CHECKING ACCOUNT BALANCE $825

STOCKS IN BROKERAGE ACCT $5,500

QUARTERLY AUTO INSURANCE (NOT YET DUE) $450

MASTER CARD BILL $245*

ANTIQUE COIN COLLECTION $3,250

MONTHLY PAYCHECK (GROSS) $3,000

CONDOMINIUM $65,000

PAYROLL TAX WITHHELD $ 600

MONTHLY GROCERIES $225

MONTHLY MORTGAGE PAYMENT $530

AUTOMOBILE $9,000

MUTUAL FUNDS $2,100

FURNITURE $5,500 401(K)

RETIREMENT ACCT $4,500

MORTGAGE BALANCE $50,000

MONTHLY CAR PAYMENT $265

AUTO LOAN BALANCE $4,225

MONTHLY UTILITY BILL $275*

OTHER PERSONAL PROPERTY $8,000

SAVINGS ACCT BALANCE $2,300

OTHER MONTHLY CASH EXPENSES $150

MONTHLY CLOTHING EXPENSES $45

ANNUAL MEDICAL EXPENSES $264

*Bills represent the average of the prior months charges AND ALSO current months expenses.

Questions: 1) What are the Monetary Assets listed above?

2) What are the Investment Assets listed above?

3) What are the Retirement Assets listed above?

4) How much are the Total Assets?

5) What are the Current (short term) Debts listed above?

6) What are the total debts? 7) What is your clients net worth?

8) What is the Current Ratio?

9) What is the Debt Ratio?

HINT: Since they are average amounts you may assume that the credit card and utility bills are both a debt (related to the prior month) and an expense (related to the current month).