Question

Anakin & Padme Skywalker			Anakin & Padme Skywalker
Balance Sheet			Statement of Income
	12/31/2017			1/1/17 to 12/31/17
Cash	22,500		Salary	190,000.00
Money Market Account	20,800		Investment Income	200.00
401k - FMV	729,800		Other Income	10,000.00
IRA - FMV	205,000			----------
House - FMV	435,000		Total Income	200,200.00
Automobiles - FMV	60,000
	---------		Automobile Expense	6,800.00	N
Total Assets	1,473,100		Charitable Contribution	1,000.00	D
			Clothing	8,400.00	N
Credit Cards Payble (ST)	13,500		Education Expense	16,000.00	N
Current Portion of LT Debt	20,000		Gifts Given	10,000.00	D
Auto Loan (LT)	23,800		Groceries	14,100.00	N
Mortgage (LT)	170,000		Insurance Expense ($800 is Homeowners)	6,000.00	H1 (Partial)
New Worth	1,245,800		Mortgage Interest Expense	8,000.00	H1
	----------		Meals and Entertainment	10,000.00	D
Total Liabilities & Net Worth	1,473,100		Medical Expense	3,500.00	N
			Household Expense	5,500.00	N
			Real Estate Taxes	7,000.00	H1
			Repairs and Maintenance	7,400.00	N
			Retirement/401k Contributions	17,000.00	S
			Subscriptions, Dues & Memberships	1,000.00	D
			Taxes - Income Tax	39,000.00	N
			Utilities	11,000.00	N
			Vacation and Travel	8,500.00	D
			Mortgage Loan	15,000.00	H1
			Auto Loan	5,000.00	H2
				--------------
			Total Expense	200,200.00
			Net Income	-
			D = Discretionary
			N = Non-Discretionary
			S = Savings

1. Prepare a proper B/S Statement

2. Prepare a B/S pie chart and comment

3. Prepare an I/S pie chart and comment

4. Complete the following ratios
a. emergency fund ratio
b. current ratio
c. H1
d. H2

5. F/S Analysis assuming there is a $7,000 employer match to the 401K plan, calculate
a. Savings rate and comment if they started saving at age 25
b. Based on their current age, Calculate the investments assets to gross pay and comment

Answer 1

Prepare the balance sheet as follows:

A & P Skywalker
Balance Sheet
As at Dec 31
Current Assets:
Cash		$22,500.00
Money market account		$20,800.00
Total current assets		$43,300.00
Long-term assets:
401k		$729,800.00
IRA		$205,000.00
House		$435,000.00
Automobiles		$60,000.00
Total long-term assets		$1,429,800.00
Total Assets		$1,473,100.00
Liabilities and Stockholders' Equity
Current liabilities:
Credit cards payable		$13,500.00
Current portion of LT debt		$20,000.00
Total current liabilities		$33,500.00
Long-term liabilities
Auto loan		$23,800.00
Mortgage		$170,000.00
Total Long-term liabilities		$193,800.00
Total Liabilities		$227,300.00
Stockholders' Equity		$1,245,800.00
Total stockholders' equity		$1,245,800.00
Total liabilities and stockholders' equity		$1,473,100.00

2.

Prepare the pie chart using excel:

Go to the insert option in the tool bar and select pie chart.

In the pie chart inputs, select both the columns of the balance sheet to get the resultant pie chart.

From the above pie chart, below points can be conferred:

a. Investment in long-term assets is very high compared to that of current assets.

b. Current liabilities is small compared to long-term liabilities.

c. Stockholders' equity is the highest with value over $1.2 million.

d. The financial health of A & P Skywalker is good.

3.

Below is the pie chart for income statement:

From the above pie chart, below points can be conferred:

a. Income taxes expense is the major cost.

b. Salaries is the major income source.etc.