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The following is a partial balance sheet for Andy and Kim Garza. Complete the balance sheet by determining their total assets, total current liabilities, Yong-term liabilities, and net worth Liabilities and Net Worth Balance Sheet Name(s): Andy and Kim Garza Date: December 31, 2012 Assets Liquid Assets Cash $195.75 Checking 215.33 Current Liabilities Electric $481.80 206.49 Water 244.69 Insurance premiums his 344,15 Savings Total Liquid Assets: 5655.77 Taxes Mortgage 1,125.00 833.33 1,032.44 894.78 Investments Auto $1.440.00 MasterCard Retirement funds, IRA Total Investments: $1,440.00 Real Property Total Current Liabilities: Long Term Liabilities Primary residence mortgage Total Long Term Liabilities: Primary residence $162,000.00 $39,999.94 Total Real $162,000.00 Property
$162,000.00 Total Long-Term Liabilities: Total Real Property: Personal Property Honda Pilot Total Personal Property $11.990.00 $11,990.00 (2) Total Liabilities: s Net Worth (1)-(2) s (1) Total Assets: Total Liabilities and Net Worth:
Net Worth: It isn't just the preparation of a balance sheet but the interpretation of the data that can reveal a family's financial condition. Andy and Kim Garza are both age 44. Using data from the 2012 Federal Reserve Bulletin (shown) and the Garzas balance sheet, what conclusions can you draw? $260,000 $240,000 $216,800 $220,000 $206,700 $200,000 $179,400 $180,000 $160,000 $140,000 Median Net Worth $120,000 $117.900 $100,000 $80,000 $60,000 $42,100 $40,000 $20,000 $9,300 30 Less than 35 35-44 65-74 75 or more 45-54 55-64 Age Source Jessie Onder et al. Changes in U.S. Family Finances from 2007 to 2010: Evidence from the survey of Consumer Financesed ve Bulletin
with their balance sheet in place, Andy and Kim can compare their total liabilities to their total assets to generate a more realistic view of their current wealth position. The Federal Reserve Bulletin provides data on median net worth, broken down by age brackets • Their . Based on the Federal Reserve Bulletin data, the Garzas are the median net worth for their age group. would be considered their dominant asset. • Based on their liabilities, it appear that they have adequate liquid assets to meet their bill payments and to cover any small, unexpected expenses. • Their balance sheet lists their house at 8% higher than the purchase price. The equity in their home iss Grade It Now Save & Continue