Question

Ms Yvette Bordeaux has asked you to prepare specified personal financial statements on her behalf. Yvette is a 33 year-old employed landscape gardener and has a gross income of $55,000 for the 2018 financial year. In addition, Yvette’s employer also contributes 9.25% of her gross income into a personal superannuation fund that you have set up to fund her retirement. Fortnightly salary deductions (based on gross income) for Yvette are as follows:

            Details                                                Percentage

            Taxation                                                          20

            Personal super contributions                        7

            Health cover                                                    3

            Union fees                                                       2

Other expenditures incurred by Yvette for the 2018 financial year are as follows:

Details                                                Amount ($)               

Household expenses                             10,000

Mortgage loan repayments                  12,000

Credit card repayments                           8,000

Entertainment expenses                          5,000

Yvette has also provided a list of her assets and liabilities based on the information that she currently has available as shown below:

Details                                                Amount ($)               

Assets -

House                                                              400,000

Personal effects                                             15,000

Superannuation                                              160,000

Car                                                                     10,000

Savings account                                                 2,000

Liabilities -

Mortgage loan                                                  250,000

Credit card balance                                           10,000

(a)       Prepare a personal cash flow budget for Yvette for the 2018 financial year based on the information provided.

(b)       Prepare a current personal balance sheet for Yvette based on the information provided.

Answer 1

(a)

Yvette's cash flow budget
for the 2018 financial year
Opening Balance	2000
Net Pay	37400
Less: Household Expense	-10000
Less:Mortgage loan repayments	-12000
Less: Credit Card Repayments	-8000
Less : Entertainment Expense	-5000
Cash /Cash Equivalent Balance at the end	4400
Gross Income	55000
Less: Taxation (20%)	11000
Less: Personal super contributions (7%)	3850
Less:Health Cover (3%)	1650
Less: Union Fees (2%)	1100
Net Pay	37400

Gross Income	55000
Add : Contribution to Super annuation contribution	5087.5
Less: Taxation (20%)	-11000
Less:Health Cover (3%)	-1650
Less: Union Fees (2%)	-1100
Less: Household Expense	-10000
Less : Entertainment Expense	-5000
Net Pay	31337.5

(b)

Yvette's Balance Sheet
for the 2018 financial year
Assets		Liabilities
House	4,00,000.00	Mortgage Loan	2,38,000.00
Personal Effects	15,000.00	Credit Balance	2,000.00
Superanuation	1,68,937.50
Car	10,000.00	Capital	3,58,337.50
Saving Account	4,400.00	(Opening Capital +Net income)
	5,98,337.50		5,98,337.50

Gross Income	55000
Add : Contribution to Super annuation contribution	5087.5
Less: Taxation (20%)	-11000
Less:Health Cover (3%)	-1650
Less: Union Fees (2%)	-1100
Less: Household Expense	-10000
Less : Entertainment Expense	-5000
Net Income	31337.5