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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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