Toris_Statement_of_Financial_Position_2.2.3.A2[1] - Page|15 2.2.3.A2 TotalPointsEarned TotalPointsPossible Name 26 Date Percentage Jesus Ceras Class 4th

Toris_Statement_of_Financial_Position_2.2.3.A2[1] - Page|15...

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Unformatted text preview: Page | 15 2.2.3.A2 Tori’s Statement of Financial Position Total Points Earned Total Points Possible Name 26 Date Percentage Jesus Ceras 10/19/16 Class 4th Step One: Tori is considering purchasing a new pre‐owned car. In order to help make a decision she would like to know her net worth. Use the information provided in the table below to create a Statement of Financial Position for Tori. (10 points for completion) Tori is 21 years old Completing training to be a radiology technician and has one semester left Works part‐time to earn $13,000 per year Owes $5,000 in student loans that helped pay for her training Owns a car that runs fine but would like an Used a website to determine the market value of her current upgrade car is $3000 Has $1,000 in her checking account Keeps $20 in cash in her wallet at all times Keeps $2,000 in her savings account for Rents a one bedroom apartment and owns $1,000 worth of emergencies furniture and other household supplies Bought a laptop computer when she started Loves to shop and estimates that she owns $1,500 worth of school but estimates that it is only worth $200 clothes and shoes Invests $20 per month into a retirement account that is currently worth $500 Step Two: Tori would like to trade in her car for a new pre‐owned car priced at $12,000. She would receive $2,000 trade‐in value on her car making the purchase price of the new car $10,000. She will use $1,000 from her emergency savings and apply for a loan for the remaining $9,000. Create a new Statement of Financial Position for Tori if she were to purchase the new car. (10 points for completion) Step Three: Use Tori’s Statements of Financial Position to answer the questions below. 1. What is Tori’s current net worth? (1 point) 4,200.00 2. What would her net worth be if she purchased the new car today? (1 point) 3,200.00 3. Based upon Tori’s Statements of Financial Position, would you recommend that she purchase the new car? Why or why not? Make sure to consider what trade‐offs she will have to make with both options. (2 points) She should not buy the car because if she buys the car her net worth would be lower. If she does not purchase the car her net worth would be higher 4. How could Tori increase her current net worth? (1 point) Not to buy an expensive car or not to buy a car at all 5. Tori has chosen to use student loans to help her pay for training to become a radiology technician. This has lowered her current net worth, but what impact may it have on her future net worth? (1 point) Her net worth would increase in the future because she would not have to pay for her training in the future © Take Charge Today – August 2013 – Statement of Financial Position Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona Page | 16 2.2.3.A2 If she purchased a new car: Current: Statement of Financial Position for: Tori Date: 10/19/16 20.00 1,000.00 2,000.00 $ 3,020.00 20.00 ----------------------- 1,000.00 3,000.00 200.00 1,500.00 ---------------------- -------------------- --------------------- $ 5,700.00 ---------------------------- 1,000.00 12,000.00 200.00 1,500.00 ----------------------------- ---------------------------- -------------------------- 14,700.00 Assets Monetary assets Cash on hand Value of checking account Value of savings account Other: Subtotal of monetary assets Tangible Assets Market value of home Market value of household furnishings Market value of automobile Market value of electronics Market value of clothing Market value of jewelry Market value of sporting goods Other: Subtotal of tangible assets Investment Assets Value of investments Other: Subtotal of investment assets Total Assets 1,000.00 1,000.00 2,020.00 500.00 500.00 --------------------------- --------------------------- $ 500.00 500.00 $ 9,220.00 16,220.00 Liabilities Home mortgage balance Loan balance for automobile Student loan balance Personal loan balance Credit card balance Money owed to others Other: Total Liabilities Net Worth = Total Assets ‐ Total Liabilities ------------------------ -------------------- 5,000.00 -------------------------- ------------------------ ----------------------- ------------------------ $ 5,000.00 $ 4,220.00 --------------------------- 9,000.00 5,000.00 ----------------------------- ------------------------- ----------------------------- ---------------------------- 14,000.00 3,220.00 © Take Charge Today – August 2013 – Statement of Financial Position Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona ...
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  • Spring '14
  • Bennett
  • Statistics, Market Value, net worth, Automobile, Financial Position, Tori

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