Create year-end net worth statement and annual cash flow

Assignment Help Financial Management

Reference no: EM131053034

You are a new, but highly educated financial planner and need to prepare some financial statements and answer some questions for your clients, Robert and Cora Crawley, the Earl and Countess of Grantham. Since you have been learning from the best financial planning instructor from Amarillo, Texas, you should have no problem providing your clients with the following 1. Create a year-end net worth statement and annual cash flow statement for the Crawley family given the data on the next page. 2. Use the financial ratios discussed in the book to identify the Crawley’s strengths and weaknesses. After leaving Great Britain, the Crawley family is now your typical suburban family living in Frisco, Texas. Robert and Cora met at an English pub during college and it was love at first sight. They have been married for several years and have two children that are currently (ages 6 and 1). Robert (age 45) and Cora (age 35) own a small business in which they use to pay each other a salary. The Crawleys want to make sure that they are tracking their expenses, meeting or exceeding important financial ratios and understand where they currently are in terms of assets, liabilities and net worth. The Crawley’s Financial Information (monthly figures): Data provided as of 12/31/2015 Cora's Monthly Salary 2,500 Jewelry 6,500 401(k) Account (His) 110,368 Dividend/Interest Income (monthly) 47 401(k) Account (Her) 37,581 Mortgage Payment (PITI) 1,777 Boat 8,000 Infiniti Payment 448 2007 Jeep Patriot 12,000 Jeep Payment 240 Harley Payment 210 Furniture 12,300 BB National Credit Card Payment 195 Infiniti Loani 42,000 Sears Credit Card Payment 305 Brokerage Account 3,700 Cable 120 Alarm System 39 BB National CCii 5,237 Life Insurance 140 Internet 100 Gas 370 Cellphone 130 Robert 's Monthly Salary 8,800 Harley Davidson 21,000 Water 80 Sears CCiii 10,200 Entertainment 400 Auto Insurance 168 Child Care 1,400 Home Repairs 200 2010 Infiniti E35 44,500 Groceries 500 Checking (Joint) 2,000 Bank CD (Joint) 4,000 Dining Out 400 Hobbies 300 Savings Account 2,300 Roth IRA (H) 7,298 Club Dues 150 Harley Davidson Loaniv 18,000 Dry Cleaning 160 Charity 350 Primary Mortgage v 180,000 Landscaping 300 Maid 400 Parking and Tolls 40 Dividend/ Interest Reinvestment 47 Student Loan Payment 280 Robert 's 401(k) contributions 300 Student Loans H 37,000vi Cora's 401(k) contributions 250 Jeep Auto Loanvii 10,000 Robert 's Roth Contributions 220 Total Taxes (FICA AND INCOME TAX) 553 Primary Home (VALUE) 278,900 Cash Savings Contribution 300 Robert and Cora might receive a settlement in the amount of $800,000. Robert and Cora want to know how to make sure their money is protected from a bank failure and that the money stays extremely liquid. Please help educate Robert and Cora on the FDIC.

Reference no: EM131053034

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