Balance

Sheet (Statement of Financial Position)

ASSETS

Monetary Assets






Tangible Assets

Cash on hand
Checking Account
Savings Account
Other
Total Monetary
Assets

$450
$78.16
$100.01
$375
$1,003.17

2.20%
0.38%
0.49%
1.83%
4.90%

Personal Property
Vehicle
Total Tangible
Assets

$2,000
$15,490
$17,490

9.76%
75.59%
85.35%

Investment Assets

Government Bonds $2,000

Total Investment
Assets
Total Assets

$2,000

9.76%

$20,493.17

9.76%

100%

$22.08
$45.71

0.39%
0.81%

$67.79

1.20%

$5,563
$5,563

98.80%
98.80%

$5,630.79
$14,862.38
$20,493.17

27.48%
72.52%
100%

LIABILITIES

Short-Term Liabilities

Water Bill due

Credit Card Bill
due

Total Short-Term
Liabilities

Long-Term Liabilities

Student Loan

Total Long-Term
Liabilities

Total Liabilities

Net Worth

Total Liabilities
and Net Worth

Income/Expenditures Statement (Statement of Cash

Flows)

INCOME
Wages from Job 1
Wages from Job 2
Misc/Gifts
Total Income

$100
$550
$100
$750

13.33%
73.33%
13.33%
100%

$100
$100

$75
$50
$50
$15
$75
$15
$280
$380

26.32%
26.32%

19.74%
13.16%
13.16%
3.95%
19.74%
3.95%
73.68%
100%

$370

49.33%

EXPENDITURES
Fixed Expenses
Rent
Total Fixed Expenses
Variable Expenses
Bills
Medicine
Groceries
Car Maintenance
Eating out
Miscellaneous
Total Variable Expenses
Total Expenses

SURPLUS (DEFICIT)

Ratio Analysis
Liquidity Ratio

Monetary Assets/Monthly expenses= $1,003.17/$380 = 2.64

The liquidity ratio gives an illustration of the number of months in which living
expenses can be paid should an emergency arise; 3-6 months is preferred. My
liquidity ratio is 2.64, which means that my living expenses can be paid for 2.64
months should an emergency arise. Since 3-6 months is the preferred benchmark, I
would like for this number to increase a little bit. This will come from either having
more monetary assets or reducing monthly expenses.

Asset-to-Debt Ratio

Total Assets/Total Debt= $20,493.17/ $5,630.79= 3.64

The Asset-to-Debt Ratio provides a broad measure of ones financial liquidity; a high
ratio is desirable. My Asset-to-Debt ratio is 3.64, which is extremely close to one of
the examples given in our textbook. While this isnt a bad number, I would like to
see this number get bigger in the near future.

Debt-to-Income Ratio

(Annual debt repayments/gross income) x100 = ($350/$9,000) x100= 3.89%

The Debt-to-Income Ratio compares amount spend on debt repayments to gross
income; should be 36 or less and should decline as one grows older. My debt-to-
Income ratio of 3.89% is extremely low not necessarily because of high gross
income, but because my annual debt repayments are relatively low.

Debt Payments-to-disposable Income Ratio

Monthly non-mortgage debt payments/monthly disposable (not gross) income=
$50/$700= 7.14%

The Debt Payments-to-disposable Income Ratio estimates funds available for debt
repayment. Our textbook suggests that 14% or less is desirable and 16% or more is
problematic.

Investment Assets-to-Total Assets Ratio

Investments assets/Total Assets = $2,000/$20,493.17= 9.76%

The Investment Assets-to-Total Assets ratio illustrates how well one is advancing
towards their financial goals. Our textbook suggests that one should have a ratio of

10 for people in their 20s, 11 to 30 for those in their 30s, and 31 or higher for older
adults. My ratio is just below 10, so I am not too far behind, but there is some
catching up to do.