Home Assignment - Home Assignment Personal Finance #1 (2...

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#1 (2 points) Elizabeth Walker has been asked by her banker to submit a personal balance sheet as of June 30, 2004, in support of an application for a $3,000 home improvement loan. She has come to you for help in preparing it. So far, she has prepared the following list of her assets and liabilities at June 30, 2004: Cash on hand $70 Balance in checking account 180 Balance in money market deposit 650 Bills outstanding: Telephone $20 Electricity 70 Charge account balance 190 Visa 180 MasterCard 220 Taxes 400 Insurance 220 1,300 Home and property 68,000 Home mortgage loan 52,000 Automobile 10,000 Installment loan balances: Auto Loans 3,000 Furniture Loans 500 3,500 Personal Property: Furniture 1,050 Clothing 900 1,950 Investments: U.S. government savings bonds 500 Stock of ABC Corporation 3,000 3,500 From the data given, prepare Elizabeth Walker’s balance sheet, dated 30 June 2004. Then evaluate her balance sheet relative to the following factors (a) solvency, (b) liquidity
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This note was uploaded on 03/11/2012 for the course ECON 104 taught by Professor Ismailov during the Fall '11 term at London College of Accountancy.

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Home Assignment - Home Assignment Personal Finance #1 (2...

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