BALANCE SHEET

JOSHUA NELSON (PERSONAL)

2-26-2015
Current Assets:
Monetary
Money/Cash Equivalents
Personal Loan Receivable
Tangible
Property (Car)
Property (computer)
Investment
Stocks
Savings account
Total Current Assets
Total Assets
Current Liabilities: (For Year)
Orthodontist
Gym Contract
School Loan
Personal Loans
Total Current Liabilities:
Long-term Liabilities:
Car Note
Total-Long Term Liabilities
Total Liabilities:

NET WORTH:

PERCENT
800
500

400
1000
11000
11000

7%
5%
0%
68%
7%
0%
4%
9%
100%
100%

600
300
1000
500
3400

4%
2%
6%
3%
22%

5000
5000
15800

32%
32%
100%

7500
800

2600

Statement of Cash Flows

Joshua Nelson (Personal)
2-26-2015
INCOME
Wages
Scholarship
Tax Refund
Gifts
Government GI BILL

AMOUNT
5000
2000
500
500
2000

Total Income:
EXPENSES:
FIXED:
Orthodontist
Health Insurance
Gym Membership
VARIABLE:
Auto Expense/Maint
Gas
Books Supplies
Food
Gifts
Clothing
Recreation/Entertainment
Personal Expenses
Roth IRA Deposits

PERCENT
50%
20%
5%
5%
20%

10000

600
500
400

100%

6%
6%
5%

500
1800
500
1500
400
430

6%
20%
6%
17%
5%
5%

350
500

4%
6%

2000

23%

Total Expenses:

8800

100%

Surplus (Deficit):

1120

FINANCIAL ANALYSIS:
Ratio
Basic Liquidity
Asset-to-Debt
Debt Service-to-income
Investment Assets-to-Total
Assets Ratio
Debt Payments to Disposable
Income

Amount
1.64
1.30
0.15
0.14
0.17

Analysis of Ratios:
1. Basic Liquidity: The ratio measures the individuals ability to pay off
any pending, foreseeable debts. It measures the monetary assets
verses monthly expenses. A basic liquidity ratio of 1.64 is highly
desirable, especially for a college student. It assures the capability of
the individual to pay off any pending debts.
2. Asset to Debt: The ratio compares total assets to total liabilities. It is
a broad, but acceptable tool used to determine the solvency and ability
to pay debts. Usually, at least a 3.0 or higher is desired for this ratio.
However, considering I am a college student, a 1.30 ratio is considered
acceptable with regards to my anticipated net income and assets
increase in the future.
3. Debt-to-Service-Income: This ratio provides a view of the total debt
burden of the individual. A ratio of 0.36 or less is desirable. It
measures your annual debt repayments against gross income. My ratio
of 0.15 is highly valued which can be attributed to my lack of
substantial school loans.
4. Investment Assets-to-Total Assets: Compares the value of your
investments against your total assets. The higher the ratio, the better
chance one has of reaching financial goals for retirement. A ratio of
0.50 is ideal according to standards. My ratio of 0.14 is acceptable
considering I am in school with no full time employment to provide
monetary assets for investment.
5. Debt Payments to Disposable Income: Compares monthly debt
liabilities with disposable income. This measures the monthly burden of
fixed debt one has against income available for the month. A ratio of
0.15 or less is desirable. My ratio of .17 is, once again, due to being a

full time student. The monthly income is not proportionate to

anticipated disposable income after graduation.