Prepare the couple balance sheet

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Reference no: EM133075757

1. Salleh and Hawa have been married for 5 years. They own a condominium in Petaling Jaya, and have no children.  Salleh is 28 and Hawa is 26 years old respectively. Both have set their longest term financial goal 34 years from now for their retirement.  Salleh has just completed his final year as an engineer, working in an manufacturing company. Hawa an MBA graduate is working at a local advertising company.  Both love to travel and enjoy water sports.  Before they want to start a family, they want to to ensure that they are financially stable and have set up their children's education fund and well as meet all their short and medium goals.  They have decided to compile a list of their expenses so that they can see clearly. Below are information of their expenses so they can a regular savings program:-

Items

Annual Expenditures (RM)

Balance of long term loan (from parents)

19,200

Wages and Salary - Salleh

240,000

Jewellery and artwork

6,000

Current account - Salleh

3,040

Homeowner fire insurance premium payment

4,800

Wages and Salary - Hawa

93,400

Condominium (market value)

900,000

Life insurance premium payment

7,460

Stocks

15,000

Stock dividend received

480

Salleh's bonus

12,200

Toyota Camry (market value)

92,000

Auto insurance premium payment

7,120

Short term loan

700

Dental/medical bills

500

Mortgage payment

47280

Household furnishing 

14,800

Credit card balance - Hawa

1,200

House repair

4200

Mutual funds

9,000

Outstanding housing loan

640,000

Auto loan payment

10,080

Retirement funds

16,000

Savings Account -Hawa

2,900

Credit card balance- Salleh

1,880

Income tax- Salleh and Hawa

73,276

Money market funds and deposits

3,200

Balance of auto loan

17,400

Corporate bonds

4,000

Corporate bond interest received

780

Credit card limit - Salleh and Hawa (each)

10,000 

Education loan

15,200

Electric and water and cable tv bills

7000

Phone bill and internet

1920

Maintenance fee for condo

960

Groceries

9700

Car maintenance

9,060

Fine dining

13,600

Hospital bills

1,220

Medical checkup for both

9,000

Shopping expenses

6,800

Property tax

8,400

Purchase 3 unit air conditioner

5,000

Laundry, cosmetics and hair care

2,800

Vacation

18,520

Tuition fee and books

5,600

Holiday/birthday gifts

860

Education loan payment

3,600

Paid parents' loan

2,400

i. Prepare the couple's balance sheet for the year ended 31 December 2020

ii. Prepare the couple's income statement for the year ended 31 December 2020

iii. Analyse and explain the couple's financial performance by applying personal finance ratios.

Reference no: EM133075757

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