Adele Smith, a 28 year old University graduate, never took a personal finance class. She pays her bills on time, has managed to save a little in mutual funds, and with the help of an inheritance managed to buy a condominium. Adele worries about her financial situation. Given the following information prepare an income statement, balance sheet and perform a ratio analysis (including asset allocation) for Adele. Be sure to indicate fixed and flexible expenses on the Income and Expense Statement.
Adele has provided you with the following list:
Visa balance $355 (payment required of 5% of balance monthly or $10 which ever is Greater)
Stocks $5500
Mastercard $245 (payment required of 5% of the balance monthly or $10 whichever is Greater)
Monthly paycheque (net) $2400
Mortgage monthly $530
Phone bill $85
Cable bill $42
Mutual Fund (invested in bonds) $1800
RRSP (invested in equity funds) $4500
Car payment monthly $235
Power bill monthly $60
Water and Sewer bill annually $200
House taxes annually $960
Savings account balance $1100
Chequing account balance $825
Car insurance (semiannually) $450
House and land $65000
Food monthly $225
Mortgage outstanding $52000
Car loan outstanding $4225
Miscellaneous expenses (monthly) $150
Entertainment monthly $200
Monthly contribution to RRSP $100
Pontiac G6 $8000
House Insurance annually $350