Practice Exercise

Using the information given below, please attempt the questions

$1.$ Using the data below prepare a balance sheet and cash flow statement. Determine the total asset, total liabilities, net worth, total cash inflow, and total outflow

i$.$ Rent for the month$=$$$650$

ii$.$ Monthly take home pay$=$$$1950$

iii. Cash in chequing account$=$ $$450$

iv$.$ Savings account balance$=$$$1890$

v$.$ Spending for food$=$$$345$

vi$.$ Balance of educational loan$=$$$2160$

vii. Current value of automobile$=$$$7800$

viii. Telephone bill monthly$=$$$65$

ix$.$ Credit card balance$=$$$235$

x$.$ Loan payment$=$$$80$

xi$.$ Auto insurance$=$$$230$

xii. Household possessions$=$$$3400$

xiii. Stereo equipment$=$$$2350$

xiv. Electricity payment$=$ $$90$

xv$.$ Lunches and parking at work$=$$$180$

xvi. Donations$=$$$70$

xvii. Home computer$=$$$1500$

xviii. Value of stock investment$=$$$860$

xix. Clothing purchase$=$$$110$

xx$.$ Restaurant spending$=$$$130$

$2.$ Bill and sally Kaplan have an annual spending plan that amounts to $$36000.$ If the inflation is $3\mathrm{.}1\%$ for the next $3$ years, how much do the Kaplans want for their living expenses $3$ years from now?

$3.$ Using the formula in the not posted, compute the time value of money for saving.

i$.$ The future value of a $$500$ savings deposit after $8$ years at an annual interest rate of $5\%$

ii$.$ The future value of saving $$2000$ a year for $5$ years at an annual interest rate of $4\mathrm{.}45$

iii. The present value needed in a saving account that will earn $3\mathrm{.}5\%$ annual interest rate if $$5000$ is needed at the end of $5$ years.