This document contains financial information for Spencer and Alisha, including their assets, liabilities, cash flow, and various financial ratios. Their assets total $423,134 and include investments, property, vehicles, and cash. Their monthly income is $9,183 while expenses are $7,168, leaving a $31,160 annual cash surplus. This surplus allows them to pay off their $5,700 credit card debt and improve their debt ratios. However, their liquidity ratio is low and Alisha's investment and income levels could be higher.

1. 1.
ASSETS
LIABILITIES
Short-Term Liabilities
Credit Cards $5,700
Total Short Term Liab. $5,700
Long-Term Liabilities
USAA Loan $10,000
US Bank Loan (house) $175,000
US Bank Loan (car) $35,000
US Bank Loan (car) $15,500
Total Long Term Liab. $235,500
Total Liabilities $241,200
NET WORTH $181,934
NET WORTH- $181,934
Monetary Assets
Cash on hand $350
Checking $10,000
Savings $25,000
Total Monetary Assets $35,850
Tangible Assets
Automobiles $18,000
Personal Property $337,200
Total Tangible Assets $355,200
Investment Assets
Spencer’s Traditional IRA $22,084
Alisha’s Traditional IRA $10,000
Total Investment Assets $32,084
Total Assets $423,134

2. 2.
CASH FLOW January 2015- December 2015
Income Annually Monthly
Spencer’s Salary $90,000 $7,500
Alisha’s Salary $20,000 $1,667
Dividends $200 $17
Total Income $110,200 $9,183
Expenses Annually Monthly
Fixed Expenses
Federal Income Tax Withholding $15,000 $1,250
Social Security Tax Withholding $6,820 $568
Contributions to Spencer’s Employer $10,000 $833
Property taxes $5,500 $458
Cell Phones $900 $100
Cable TV & Internet $1,200 $100
Total Fixed Expenses $39,420 ($3,309)
Variable Expenses
Home repairs $1,000 $83
Utilities $3,700 $308
Groceries $6,500 $100
Eating out $2,400 $200
Auto maintenance $1,000 $83
Medical/ Dental Expenses $3,000 $250
Clothing $2,400 $200
Personal Care $2,400 $200
Appliance, Furniture, & Equipment $200 $17
Entertainment & Vacations $5,000 $417
Charitable Contributions $11,020 $918
Gifts $1,000 $83
Total Variable Expenses $39,620 $2,859
Total Expenses $79,040
Cash SURPLUS- $31,160
This cash surplus has a positive impact on the balance sheet. With the cash surplus
they can afford to pay off the credit card debt. Which will increase their debt to
income ratio.

3. 3.
 Liquidity Ratio- 2.33% Ratio
 Asset-to Debt Ratio- 1.75% Ratio
 Debt Service-to-Income Ratio- 2.18% Ratio
 Debt Payments-to- Disposable Income Ratio- 36%
 Investment Assets-to-Total Assets Ratio- 7.58%
4. Positives
 The family is in a cash surplus
 The also have one care that is paid off entirely
 Spencer has his IRA account diversified well
 Due to the cash surplus they can now pay off their credit card bill
Negatives
 Alisha only had on investment vehicle for her IRA, it needs to be diversified
 They have a low liquidity ratio. Meaning monetary assets will last then 2
months if there was income lost. Need at least 3 months
 They need to increase investment assets, their ratio is quite low, mainly
because of Alisha
 Alisha only making $20,000 a year hurts the cash flow. Needs to find a way to
earn more cash.