Question

Section II (Unit 4 Application): Evaluate Your Client’s Financial Health

In preparation of your next meeting with the them, you now need to review the financial information. You are responsible for creating a report based off of this information. Analyze the assets & liabilities, to evaluate their financial health and provide cash management counseling.

In the Case Study: Resources folder, please review the Client’s Financial Data to create (show your work) the following items IN EXCEL with the information given by the Clients:

• Cash Flow Statement
• Balance Sheet
• Financial Ratios (5 ratios; review Unit 4)

After completing the financial statements and ratios (IN EXCEL), write a one page summary to your clients explaining the outcome of their Cash Flow Statement and Balance Sheet and how their ratio results compare to the benchmarks.

Section II (Unit 4 Application): Evaluate Your Client’s Financial Health

In preparation of your next meeting with the them, you now need to review the financial information. You are responsible for creating a report based off of this information. Analyze the assets & liabilities, to evaluate their financial health and provide cash management counseling.

In the Case Study: Resources folder, please review the Client’s Financial Data to create (show your work) the following items IN EXCEL with the information given by the Clients:

• Cash Flow Statement
• Balance Sheet
• Financial Ratios (5 ratios; review Unit 4)

After completing the financial statements and ratios (IN EXCEL), write a one page summary to your clients explaining the outcome of their Cash Flow Statement and Balance Sheet and how their ratio results compare to the benchmarks.

Section II (Unit 4 Application): Evaluate Your Client’s Financial Health

In preparation of your next meeting with the them, you now need to review the financial information. You are responsible for creating a report based off of this information. Analyze the assets & liabilities, to evaluate their financial health and provide cash management counseling.

In the Case Study: Resources folder, please review the Client’s Financial Data to create (show your work) the following items IN EXCEL with the information given by the Clients:

• Cash Flow Statement
• Balance Sheet
• Financial Ratios (5 ratios; review Unit 4)

After completing the financial statements and ratios (IN EXCEL), write a one page summary to your clients explaining the outcome of their Cash Flow Statement and Balance Sheet and how their ratio results compare to the benchmarks.

Assets & Liabilities

Annual Income & Expenses

Joint Money Market Account $8,000

Mary's Gross - Part Time Wages $17,500

Boat $15,000 Gifts to Family $3,000 Credit Card B (For Clothes)

$3,250 Homeowners insurance $1,200 Mortgage Balance $100,000 Auto insurance/registration

$2,000 Cash on hand $1,000 Income Taxes $30,000 House $175,000 Bill's Gross Salary $110,000 Personal Property $25,000 Food (For Groceries/Restaurants) $12,000 Credit Card D (For Misc. Items) $4,000 Utilities $6,250 Mary's - Car Loan Balance $12,000 Maintenance (auto and home) $3,500 Joint Savings Account $400 Charitable Contributions $9,600 Mary's Car $23,000 Mortgage (including taxes) $21,000 Credit Card A (For Groceries/Restaurants) $2,500 Combined Auto Loan Payment $13,250 Joint Checking Account $1,250 Boat Loan $7,500 Bill's - Truck Loan Balance $30,000 Phone $1,550 Bill's Truck $42,000 Gas/Plane Tickets for Transportation $4,200 Mary's 401(k) $18,000 Medical Expenses $8,500 Bill's 401(k) $65,000 Medical Bill Payments $4,000 Medical Bills $7,500 Clothing $4,300 Credit Card C (For Travel) $11,000 Miscellaneous $8,500 Internet $750 Medical Insurance Premiums $6,300 Life Insurance premium $1,600 Credit Cards (sum of ALL credit card payments) $4,200 Mary's 401(k) - Contributions $4,000 Bill's 401(k) - Contributions $4,000

Answer 1

Cash flow statement
particulars @receipts	Amount	Particulars@payments	Amount
To marys gross part time wages	$17,500	Gifts to family	$3,000
Bills gross salary	$110,000	Credit card B for clothes	$3,250
Bills Truck	$42,000	Homeowners insurance	$12,000
Marys 401(k)	$18,000	Auto insurance/Registration	$2,000
Bills 401(K)	$65,000	Income taxes	$30,000
cash on hand	$1,000	Food / Gorceries	$12,000
		credit card D	$4,000
		Utilities	$6,250
		Maintainence @Auto and home	$3,500
		Chartible Contributions	$9,600
		Credit Card A	$2,500
		Combined Auto loan Payment	$13,250
		Gas /Plane tickets	$4,200
		Medical Expenses	$8,500
		Medical bill payments	$4,000
		Medical bills	$7,500
		Credit Card C	$11,000
		Miscellaneous	$8,500
		Internet	$750
		Medical Insurance premium	$6,300
		Life Insurance Premium	$1,600
		Balance Cash available transfer to balance sheet	$99,800
Total	$253,500		$253,500

Balance sheet
Liabilities	Amount	Asstes	Amount
Capital Account of both	$169,300	Fixed Assets
		House	$175,000
		personal property	$25,000
		Marys Car	$23,000
		Phone	$1,550
Non Current Liabilities
Car Loan @Mary	$12,000	Non Current Asset
Mortage	$21,000
Truck Loan	$30,000
Current Liabilites		Current Assets
Mortage balance	$100,000	joint money market account	$8,000
Boat Loan	$7,500	Boat	$1,500
		cash on hand	$99,800
		Joint Savings Account	$400
		Joint Checking Account	$1,250
		Clothing	$4,300
Total	339800		$339,800

Balance Sheet

Asstes	Amount
Fixed Assets
House	$175,000
personal property	$25,000
Marys Car	$23,000
Phone	$1,550
Non Current Asset
Current Assets
joint money market account	$8,000
Boat	$1,500
cash on hand	$99,800
Joint Savings Account	$400
Joint Checking Account	$1,250
Clothing	$4,300
Total	$339,800

Liabilities	Amount
Capital Account of both	$169,300
Non Current Liabilities
Car Loan @Mary	$12,000
Mortage	1$21,000
Truck Loan	$30,000
Current Liabilites
Mortage balance	$100,000
Boat Loan	$7,500
Total	339800

Financial Ratios
1.Current Ratio	Current Assets/current liabilites
	15.36666667
2.Working capital	Current asset -current liablities
	$107,750

3.Total Debt to Asset ratio	TotalDebt /Total Asset
	$0.502
4.Total Debt to equity ration	Total Debt /Total Equity
	$1.007
5.Long term debt to assets ratio	Long Term Debt /Total Asets
	$0.480