Planning with Personal Financial Statements CASHFLOW STATEMENT NET WORTH STATEMENT @ Feb 28, 2022 Income Monthly ASSETS CLIENT Liquid Assets Monthly paycheque, net 1 Savings account Total income $ Chequing account Total liquid assets Bernard Belanger has been working full-time for the last 4 years. Last year, a close family Expenses Household Assets Car @ FMV 8,400.00 friend, "Aunt Maria", suddenly passed away and left him an inheritance of $75,000. Bernard Mortgage Furnishings 3,700.00 Other personal property 2,200.00 used the money, as a down payment, to buy a townhouse at the end of 2021 for $375,000. He Property taxes Total household assets $ 14,300.00 Clothing 75.00 obtained a 4.50% rate (compounded semi-annually), makes monthly payments, and used a 25- Investment Assets Groceries 300.00 Stocks 1,500.00 year amortization. The monthly blended mortgage payment is $1,660.42 due at the end of each Gas for Car 150.00 RRSP (3 yr non-redeemable GICS) 9,500.00 Home month. As of February 28, 2022 Bernard has two months of accrued property taxes at $300 per Cell Phone with internet 210.00 Total investment assets s 11,000.00 Netflix 14.99 Total Assets 25,300.00 month. LIABILITIES Car loan 658.00 Current Liabilities Electricity bill 40.00 9 Currently his utility bills for the month are unpaid. His utility bills are on a monthly budget plan and Natural gas 72.00 10 11 Bernard set them up with automatic pre-authorized payments (PAP) from his chequing account on Water and sewer 45.00 12 13 the 5" of each month following. His $2,400/year car insurance and his house insurance are also Home insurance 60.00 14 Car insurance Total current labilities | $ UI A paid using PAP in equal monthly installments on the first of each month. Although he is usually Other Long-term Liabilities Mortgage 15 good at keeping receipts, he does have on average $200 miscellaneous cash withdrawals that he Car loan 9,200.00 Total Expenses $ 1,624.99 Total long-term labilities $ 9,200.00 simply refers to as "other." Total Liabilities 9,200.00 Net Cash Flows -$ 1,624.99 NET WORTH 16,100.00 With respect to debt, Bernard has two credit cards. He uses them for clothing, groceries and gas for his car and to collect travel points. Bernard pays them in full each month, usually around the 15 Question 3) of the month following, so as not to carry a balance. In addition to his credit cards and mortgage, Current Ratio Liquid Assets 16 Analysis Current Liabilities Guideand he also has a car loan. Bernard has no student debt. b. Liquidity Ratio Liquid Assets #DIV/0: 17 Analysis Monthly Living Expenses Guideance As far as the future, Bernard has a savings account with $1,900 in it that he uses for emergencies, and his vacation fund, and he has a chequing account with a current balance of $925. There is Debt-to-Asset Ratio Total Liabilities #DIV /0! 8 Analysis Total Assets Guideanc an RRSP account at his bank and some stocks he purchased for long-term investment purposes that his Aunt Maria helped him establish over the past few years. Bernard currently takes home d. Savings Ratio Savings #DIV /0: 19 Analysis Disposable Income Guideanc $3,900 every month. Having Maria pass away started to make Bernard think about his future. Although he did graduate End of docum with a university degree, he does not have a high level of personal finance knowledge. He started to fill in a cash flow and net worth statement but needs your help to complete it