Personal Finance 1st Edition by Jack R. Kapoor

Exercise 5

Creating Personal Financial Statements. Based on the procedures presented in the chapter, prepare your current personal balance sheet and a cash flow statement for the next month. (Obj. 3)

Step 1 of 2

A balance sheet or net worth statement is a financial statement that reports what an individual owns and owes. Steps involved are

1. Prepare a total of all assets

2. Prepare a list of liabilities

3. Subtract total liabilities from total assets to determine net worth. This indicates current financial position of an individual

Balance sheet for the next month

Assets
Savings account balance
Household possessions
Home computer
Value of investment
Total Assets
Liabilities
Balance of educational loan
Credit card balance
Total Liabilities
Net worth