Ella and David are a married couple in their mid-thirties and have a 3-year-old girl named Jules. They both work self-employed and have recently decided to assess their financial situation to plan for their future goals, such as saving for their children's education and preparing for retirement. As part of their financial review, they have gathered information on their assets, liabilities, expenses, and income to create financial statements that reflect their current financial position.

Following is the information reported on December 31, 2023.

Item	Amount
Annual car insurance	$1,500
Annual homeowner insurance	$900
Balance of David's auto loan	$7,000
Balance of David's checking account	$1,200
Balance of David's savings account	$7,500
Balance of David's TFSA	$12,000
Balance of Ella's auto loan	$5,000
Balance of Ella's checking account	$1,500
Balance of Ella's TFSA	$5,000
Child's monthly daycare fee	$1,500
Clothing	$200
David's monthly car loan payment	$400
David's monthly take-home pay	$4,000
David's monthly TFSA contribution	$500
Ella's monthly car loan payment	$400
Ella's monthly take-home	$4,450
Ella's monthly TFSA contribution	$500
Entertainment	$350
House: Current market price	$425,000
Monthly cell phone bill	$150
Monthly food: Eating out	$800
Monthly food: Groceries	$400
Monthly gym membership	$300
Monthly home internet bill	$150
Monthly hydro	$150
Monthly mortgage payment	$2,200
Monthly utilities	$250
Outstanding mortgage balance	$320,000
Value of David's car	$9,000
Value of Ella's car	$6,000

Required:

1. Using the information above, make a net worth statement as of December 31, 2023 for the family. Find total assets, total liabilities, and net worth. (8 marks)
2. Using the information above, make a monthly cash flow statement for the family. Find total income, total expenses & expenditures, and surplus/deficit. (8 marks)
3. According to Statistics Canada, the Consumer Price Index (CPI), a proxy of inflation rate in Canada rose 3.9% on an annual average basis in 2023. Imagine the family's income will increase by only 1%, but all expenses except for car and mortgage payments will be 5% higher in 2024 compared to 2023. If you make a cash flow statement where TFSA contributions are not included as expenses, what will be their expected monthly surplus/deficit in 2024? (7 marks)
4. Evaluate the effectiveness of the family's current savings strategy, particularly with regard to their TFSA contributions. Discuss whether their current savings rate and selected financial vehicle align with their financial goals. (7 marks)