Finance

Week 4 : Managing Credit - Midterm

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1. (TCO A) Rose and John have liquid assets of $5,000 and other assets of $50,000. Their total liabilities equal $26,000. What is their net worth? (Show all work.) (Points : 10)            Liquid Assets $5,000 Other Assets $50,000Total Liabilities ( $26,000)Net Worth $29,000 |

(TCO A) Construct a balance sheet from the following information. Be sure the format is correct. (Show all work.)Cash on hand                        $500Bank credit card balance          750Taxes due                               500Utility bills (over due)                120Auto loan balance                 6,000Mortgage                            45,000Primary residence               60,000Jewelry                                1,200Stocks                                 6,000Coin collection                      2,5002001 Toyota                         7,500Auto payment                         250 (Points : 20)             BALANCE SHEET Rotimi and Ria Ajibade as February, 3rd 2013 ($)Liquid Assets: Current Liabilities: Cash on hand 500 Utility Bills(over due) 120Coin Collection 2,500 Taxes due 500TOTAL LIQUID ASSETS 3000 Auto Payments 250 Bank C. card bal. 750 TOTAL CURRENT LIAB. 1,620Investments: Long Term Liabilities:Stocks 6,000 Mortgage 45,000TOTAL INVESTMENTS 6,000 Auto loan 6,000 TOTAL LONG TERM LIAB. 51,000Real Property Total Liabilities 52,620Primary Residence 60,000 Net Worth 25,080TOTAL REAL PROPERTY 60,000 Personal PropertyAuto: 2001 Toyota 7,500Jewelry 1,200TOTAL PERSONAL PROPERTY...