Cash Flow Analysis Paper
Personal Budget, Balance Sheet, and Cash Flow Statement
Memo To: Mr. Christopher De Maline
From:
Date: 02/17/2014
Re: Personal Budget, Balance Sheet, and Cash Flow Statement
Dear Mr. De Maline,
Saving money is extremely important however; some people do not have healthy savings thus leading them to financial instability. Therefore, being a good steward over your finances should be consistent and begin at an early age and progress as you age. This will provide an effective growth pattern to allow future financial security.
The purpose of this memorandum is to evaluate my client’s financial outlook, their personal budget, balance sheet, and cash flow statement and provide recommendations for improvement of their financial …show more content…
He is married and has one dependent. Kyle Latham, Chauncey’s wife is 47 years old and is currently not working. Prior to her unemployment, Kyle annual earnings were $96,000 a year. They live is a nice 4-bedroom house, in a great community with a sought after school district. The family has a comfortable looking life, though their financial outlook is pretty grim. Together Chauncey and Kyle earn $85,000 a year, which includes Chauncey’s off duty work and Kyle’s unemployment benefit. Their life savings have dwindled down the emergency fund is very low, and their credit card debt is high.
The balance sheets show my clients assets and liabilities and verify their net worth. Any property including jewelry or saleable items is considered assets and can produce income. The asset value should have a fair market value, which means the amount of money they would have today if sold. Conversely, liabilities are debts that decrease the net …show more content…
Because some people are unaware of their financial outlook, creating a cash flow statement will provide the structure needed, thus providing information such as where the money is going and how much is remaining at the end of the month. A plus to developing a cash flow statement is the ability to analyze the fixed expenses with the income and savings and modify as needed.
Latham 's cash flow statement.
_______________________________________________________
Monthly cash flow statement for December 31st, 2013
_______________________________________________________
Cash Outflows:
Mortgage $ 1,400
Property taxes $ 3,063
Car loan payment $ 565
Students loan $ 485
Credit card payments $ 600
Car/house/life insurance $ 250
Power $
Memo To: Mr. Christopher De Maline
From:
Date: 02/17/2014
Re: Personal Budget, Balance Sheet, and Cash Flow Statement
Dear Mr. De Maline,
Saving money is extremely important however; some people do not have healthy savings thus leading them to financial instability. Therefore, being a good steward over your finances should be consistent and begin at an early age and progress as you age. This will provide an effective growth pattern to allow future financial security.
The purpose of this memorandum is to evaluate my client’s financial outlook, their personal budget, balance sheet, and cash flow statement and provide recommendations for improvement of their financial …show more content…
He is married and has one dependent. Kyle Latham, Chauncey’s wife is 47 years old and is currently not working. Prior to her unemployment, Kyle annual earnings were $96,000 a year. They live is a nice 4-bedroom house, in a great community with a sought after school district. The family has a comfortable looking life, though their financial outlook is pretty grim. Together Chauncey and Kyle earn $85,000 a year, which includes Chauncey’s off duty work and Kyle’s unemployment benefit. Their life savings have dwindled down the emergency fund is very low, and their credit card debt is high.
The balance sheets show my clients assets and liabilities and verify their net worth. Any property including jewelry or saleable items is considered assets and can produce income. The asset value should have a fair market value, which means the amount of money they would have today if sold. Conversely, liabilities are debts that decrease the net …show more content…
Because some people are unaware of their financial outlook, creating a cash flow statement will provide the structure needed, thus providing information such as where the money is going and how much is remaining at the end of the month. A plus to developing a cash flow statement is the ability to analyze the fixed expenses with the income and savings and modify as needed.
Latham 's cash flow statement.
_______________________________________________________
Monthly cash flow statement for December 31st, 2013
_______________________________________________________
Cash Outflows:
Mortgage $ 1,400
Property taxes $ 3,063
Car loan payment $ 565
Students loan $ 485
Credit card payments $ 600
Car/house/life insurance $ 250
Power $