Personal Finance 1st Edition by Jack R. Kapoor

Exercise 16

Preparing a Personal Balance Sheet. Use the following items to prepare a balance sheet and a cash flow statement. Determine the total assets, total liabilities, net worth, total cash inflows, and total cash outflows. (Obj. 3)

Rent for the month, $650	Auto insurance, $230
Monthly take-home salary, $1,950	Household possessions, $3,400
Cash in checking account, $450	Stereo equipment, $2,350
Savings account balance, $1,890	Payment for electricity, $90
Spending for food, $345	Lunches/parking at work, $180
Balance of educational loan, $2,160	Donations, $70
Current value of automobile, $7,800	Home computer, $1,500
Telephone bill paid for month, $65	Value of stock investment, $860
Credit card balance, $235	Clothing purchase, $110
Loan payment, $80	Restaurant spending, $130

Step 1 of 2

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

Assets
Cash in checking account
Savings account balance
Current value of automobile
Household possessions
Stereo equipment
Home computer
Value of stock investment
Total Assets
Liabilities
Balance of educational loan
Credit card balance
Total Liabilities
Net worth