Question

Create a balance sheet as of December 31st, 2014

and a cash flow statement for the three months

ending 12/31/14 using the following information. A

ssume bills are paid in current month unless

otherwise indicated.



Take home salary received each week is $450



Utility (electric/gas/water)

bills in October were $165, November $195, and December

$200.



Bought presents and clothes for $110 in Sept

ember, $140 in October, $350 in November.

o

All purchases we're on credit and paid in the following month.



Credit limit on credit card is $3000.



Interest earned on savings during Oct

ober, November, and December was $5



Balance in savings account 12/31/14 was $0.



Car payment of $250 was paid each month.



Car loan outstanding at 12/31/14 is $

6000. Car has depreciated $4000 bye 12/31/14.



Paid car and home insurance for $330 on October 1.



Mortgage is $700 per month.



Borrowed a friend’s leaf blower for a week in November.



401k value per 12/31/14 statement is $2000.



Own home which was purchased for $100,000

(mortgage outstanding at 12/31/14 is

$87,000).



Withdrew $50 from ATM machine on December 12.



Received cash gift of $75 in December

and spent it on miscellaneous items.



Car was purchased for $10,000 last year.



Furniture, clothing, etc. worth approximately $20,000.



Phone bill was $30 per month.



Spending at supermarkets and restaurant

s was $1200 for October, November, and

December.



Flew to visit family for the holidays, airfare was $340.



Miscellaneous expenses for October through

December were $300 (gas for car, haircuts,

newspapers, etc.)



Portion of dentist bill not paid

by insurance was $60 in November.

Answer 1

Cash Flow statement
Salary (450 per week x 13 weeks)	$            5,850
Utility bills For 3 months	$              (560)
Presents and cloths	$              (490)	September ignored due to prior period
Interest on Saving	$                     5
Car Payment	$              (750)
Insurance	$              (330)
Mortgage	$          (2,100)
Cash gift	$                  75
Phone bill	$                (90)
Supermarts and others	$          (1,200)
Airfare	$              (340)
Misc. expense	$              (300)
Net cash flow	$              (230)

Balance sheet
Liabilities
Car loan	$            6,000
Home loan	$          87,000
Reserve & surplus	$          33,000
Total	$        126,000
Assets
Bank	$                   -
Car	$          10,000
Dep	$          (4,000)
Net car	$            6,000
Home	$        100,000
furniture clothing	$          20,000
Total	$        126,000