Your concluding summary should provide your views about the future performance of the company and why. 11. Your report to me should not exceed 2 pages excluding the data and computations. Table providing the ratios is not counted in the page limit. 12. Provide me the raw data to enable me to check the ratio computations. Use Worksheet 8.1 Rachel Ehrlich is a 72-year-old widow who has recently been diagnosed with Alzheimer's disease. She has limited financial assets of her own and has been living with her daughter Stephanie for 2 years. Her only income is $800 a month in Social Security
survivor's benefits. Stephanie wants to make sure her mother will be taken care of if Stephanie should die. Stephanie, 40, is single and earns $70,000 a year as a human resources manager for a small manufacturing firm. She owns a condo with a current market value of $85,000 and has a $59,000 mortgage. Other debts include a $2,000 auto loan and $400 in various credit card balances. Her 401(k) plan has a current balance of $37,000, and she keeps $7,000 in a money market account for emergencies. After talking with her mother's doctor, Stephanie believes that her mother will be able to continue living independently for another 3 years. She estimates that her mother would need about $1,700 a month to cover her living expenses and medical costs during this time. After that, Stephanie's mother will probably need nursing home care. Stephanie
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- Spring '17
- Ellen Zitani