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INFORMATION for Choice A - Young single professional A Take the information as given. Do not change any data. You may, however, add any additional information to enhance the fact pattern if you believe it is relevant for the financial plan. Graduated five years ago - Works for mid-sized accounting firm at salary of $47,000 - Is considering a job change - Begana 401(k) plan after being at job for a year and has accumulated 12,000 including the amount contributed by the employer that vests in five years - Purchased a new car this year for 28,000 and has a four year loan at 4.5% - Keeps about $2,000 in checking account - Has $9,000 in savings account - Shares an apartment with a college friend and pays one-half of $1,800 rent and also pays one-half of all utilities, bills, etc - Currently paying off student loans at $310 per month - Has a $4,600 balance on a credit card and only pays minimum amount each month TO DO: 1. Prepare a personal balance sheet (see Worksheets and textbook for examples) Remember that you may add to the informotion to enhance the fact pattern. You may want to consider adding assets and/or debt that were not mentioned. All items on the balance sheet must be explained. 2. Prepare a cash flow statement (see Worksheets and textbook for examples) Remember that you may add information to enhance the foct pattern. You may want to consider odding income or expense items. All items on the income statement must be explained. 3. Employment: Compare current job with new position Prepare a resume for the new position (see Worksheets for example) Recommend action to take - keep current job or take new job and explain the choice Write about financial and nonfinancial advantages and disadvantages Remember that you may add to the information to enhance the fact pattern. You may determine the education and experience for the resume You may determine the type of new job and the solary & benefits of that position os well as the benefits, etc. of current position (Note: Benefits may be nonfinancial as well as financial) 4. Credit: Evaluate debt situation Compute personal financial ratios to assess current financial situation. (see Worksheets for example) Recommend action to take - maintain current payments or pay off debt Remember that you may add to the information to enhance the fact pattern. You may determine the specifics about the student loon, credit card, etc. that are not already stoted above 5. Housing: Compare current shared apartment to solo new apartment Prepare a chart to compare costs (rent, food, electric, cable, heat, etc.) Recommend action to take - stay in shared apartment or get own apartment Determine what is the best decision financially given all financial concerns and also address nonfinancial matters Remember that you may add to the information to enhance the fact pattern. You may determine the location, size, cost, etc of the new apartment os compared to the current apartment. INFORMATION for Choice A - Young single professional A Take the information as given. Do not change any data. You may, however, add any additional information to enhance the fact pattern if you believe it is relevant for the financial plan. Graduated five years ago - Works for mid-sized accounting firm at salary of $47,000 - Is considering a job change - Begana 401(k) plan after being at job for a year and has accumulated 12,000 including the amount contributed by the employer that vests in five years - Purchased a new car this year for 28,000 and has a four year loan at 4.5% - Keeps about $2,000 in checking account - Has $9,000 in savings account - Shares an apartment with a college friend and pays one-half of $1,800 rent and also pays one-half of all utilities, bills, etc - Currently paying off student loans at $310 per month - Has a $4,600 balance on a credit card and only pays minimum amount each month TO DO: 1. Prepare a personal balance sheet (see Worksheets and textbook for examples) Remember that you may add to the informotion to enhance the fact pattern. You may want to consider adding assets and/or debt that were not mentioned. All items on the balance sheet must be explained. 2. Prepare a cash flow statement (see Worksheets and textbook for examples) Remember that you may add information to enhance the foct pattern. You may want to consider odding income or expense items. All items on the income statement must be explained. 3. Employment: Compare current job with new position Prepare a resume for the new position (see Worksheets for example) Recommend action to take - keep current job or take new job and explain the choice Write about financial and nonfinancial advantages and disadvantages Remember that you may add to the information to enhance the fact pattern. You may determine the education and experience for the resume You may determine the type of new job and the solary & benefits of that position os well as the benefits, etc. of current position (Note: Benefits may be nonfinancial as well as financial) 4. Credit: Evaluate debt situation Compute personal financial ratios to assess current financial situation. (see Worksheets for example) Recommend action to take - maintain current payments or pay off debt Remember that you may add to the information to enhance the fact pattern. You may determine the specifics about the student loon, credit card, etc. that are not already stoted above 5. Housing: Compare current shared apartment to solo new apartment Prepare a chart to compare costs (rent, food, electric, cable, heat, etc.) Recommend action to take - stay in shared apartment or get own apartment Determine what is the best decision financially given all financial concerns and also address nonfinancial matters Remember that you may add to the information to enhance the fact pattern. You may determine the location, size, cost, etc of the new apartment os compared to the current apartment