Question

	Year 1	Year 2	Year 3
Assets:
Residence	50,000	50,000	200,000
Stocks and bonds	10,000	10,000	10,000
Automobiles	15,000	15,000	40,000
Cash	5,000	8,000	20,000
Liabilities:
Mortgage balance	40,000	30,000	0
Auto loan	8,000	5,000	0
Student loans	10,000	8,000	0
Income:
Salary	30,000	35,000	40,000
Other	0	1,000	1,000
Expenses:
Mortgage payments	5,000	5,000	0
Car payments	1,000	5,000	2,500
Student loan payments	1,000	1,000	500
Other living expenses	15,000	15,000	20,000
Total living expenses	22,000	26,000	23,000

Calculate the amount of income from unknown sources

Answer 1

We can use net worth asset method fro calculating Unknown Income

Comparative Net Worth Asset Method
Particulars	Year 1	Year 2	Year 3
Residence	50,000	50,000	200,000
Stock and Bonds	10,000	10,000	10,000
Automobiles	15,000	15,000	40,000
Cash	5,000	8,000	20,000
Total Assets	80,000	83,000	270,000
Liabilities
Mortgage Balance	40,000	30,000	-
Auto Loan	8,000	5,000	-
Student Loan	10,000	8,000	-
Total Liabilities	58,000	43,000	-
Net Worth (Total Asset - Liabilities)	22,000	40,000	270,000
Change in Net Worth (Previous Year Net Worth - Current Year Net Worth)		18,000	230,000
Plus : Total Living Cost	22,000	26,000	23,000
Total Income	44,000	44,000	253,000
Less : Known Income	(30,000)	(36,000)	(41,000)
Income From Unknown Sources	14,000	8,000	212,000

In the Year 1 unknown income is 14000

In the Year 2 Unknown income is 8000

In the year 3 Unknown income is 212000

Known income = Salary + Other Income