Business Finance
posted by LaShun .
George Wilkins checked the spreadsheet where he keeps track of his assets
and liabilities. He discovered that (i) he owes $80,000 on his house, which
he believes to be worth $150,000; (ii) his car is worth $20,000, against which
there is $2,000 on the remaining bank loan; (iii) his stock portfolio has risen to
$50,000; (iv) he has a $10,000 balance in his bank account, which is earning
a 1.2 percent annual interest rate; and (v) the value of his other belongings is
$45,000. He has just received his monthly paycheck for $6,000 and he is trying
to decide about taking a vacation and whether or not to pay off his car loan. His
monthly expenses are $3,000 which includes the interest expense on his auto
loan. He has two possible vacation choices: the Bahamas for $2,000 or a local
beach for $1,000. If he has any money left over at the end of the month, it will
go into his bank account. If he doesn’t have enough money to cover all of his
expenses for the month, he will sell enough of his stock to cover the excess
expenses.
Use a spreadsheet to input each of George’s assets, (i) to (v), in the first
column; the value of these assets in the second column; and the liabilities
(if any) against those assets in the third column. In the fourth column compute
the net asset value of each of the assets. Total the fourth column to determine
George’s net worth at the beginning of the month.
Compute the additional net income that George will have from his paycheck
plus the interest on his bank account minus the monthly expenses. Use this
information to answer parts (c) through (f) below.
Repeat part (a) for the end of the month assuming George does not take a
vacation and pays off his auto loan.
Repeat part (a) for the end of the month assuming George takes the Bahamas
vacation and only pays $1,000 on the principal of the auto loan.
Repeat part (a) for the end of the month assuming that George takes the local
beach vacation and pays off his auto loan.
Repeat part (a) for the end of the month assuming George takes the Bahamas
vacation and pays off the auto loan.
Respond to this Question
Similar Questions

finance and accounting
Account Word Problems like this I seem not to get the concept , please give me an exam as how to figure out this problem. 1. The liabilities of Acosta Corporation equal onethird of the total assets. And stockholders equity is $160,000. … 
algebra
Melanie’s house is worth $125,000, but she still owes $78,422 on her mortgage. She has $21,236 in a savings account, and $9,477 in credit card debt. She owes $6,131 to the credit union, and figures that her cars and other household … 
personal finance
Beverly is planning for her retirement.She has determined that her car is worth $10,000,her home is worth $ 150,000,her personal belongings are worth $100,000 and her stocks and bonds are worth $300,000.She owes $50,000 on her home … 
personal finance
Katherine Kosher has determined the following information about her own finansial situation.Her checking account is worth $850, and her savings account is worth $1200.She owns her own home that has a market value of $98,000.She has … 
math
Net worth. Melanie's house is worth $125,000, but she still owes $78,422 on her mortgage. She has $21,236 in a savings account and $9,477 in credit card debt. She owes $6,131 to the credit union and figures that hers cars and other … 
Math
On March 31, 2009, Wolfson Corporation acquired all of the outstanding common stock of barney Corporation for $17,000,000 in cash. The book values and fair values of barney's assets and liabilities were as follows: Book value Fair … 
business
. George Wilkins checked the spreadsheet where he keeps track of his assets and liabilities. He discovered that (i) he owes $80,000 on his house, which he believes to be worth $150,000; (ii) his car is worth $20,000, against which … 
Business
George Wilkins checked the spreadsheet where he keeps track of his assets and liabilities. He discovered that (i) he owes $80,000 on his house, which he believes to be worth $150,000; (ii) his car is worth $20,000, against which there … 
Finance
P2. Use your knowledge of balance sheets to fill in the missing amounts: Assets: CASH  $10,000 ACCOUNTS RECEIVABLE  $100,000 INVENTORY  $ TOTAL CURRENT ASSETS – $220,000 GROSS PLANT AND EQUIPMENT – $500,000 LESS: ACCUMULATED … 
personal finances
A family with $45,000 in assets and $22,000 of liabilities would have a net worth of: A. $45,000. B. $23,000. C. $22,000. D. $67,000. im thinking d