Continuing Case
Cory and Trisha Dumont
Page 130
Case Instructions
• Answer the Following Questions:
1.
2.
Be sure to outline the characteristics of this stage, ex: family formation, goal
setting - chapter 1
No worksheet needs to be completed but be sure to identify their short
term, intermediate, and long term goals



3.
4.
Short term – less than a year, ex: begin savings to accumulate an emergency fund – you
should have 6 goals
Intermediate – 1-10 years – ex: continue saving for retirement and home purchase,
review estate plans as family changes – you should have at least 8 goals
Long term – greater than a 10 years – ex: save for child’s education, review estate
planning as family situation changes – you should have at least 4 goals
Worksheet 5 is Income Statement (use the worksheet as an example – each
one of you should have a copy of the worksheet). Total Net Income should
be $ 62, 100; Total Living Expenditures should be $ 58,397
Create Balance Sheet (you can use Worksheet 3 as an example). Total
Monetary (Current) Assets should be $ 4,400, Total Assets (Current and
Long Term) should be $ 78,300; Current Liabilities should be $ 1,300; Total
Debt/Liabilities should be $ 27,725; Net Worth = $50,575
Case Instructions Cont’d
5. Show your calculations! Interpret what each of these ratios mean.
Use answers to case 5 on page 59 as an example. This is what you
should get for the ratios:
a.
b.
c.
d.
e.
Current ratio = 3.39
Covered ratio = 0.90
Debt ratio = 35%
Long term debt coverage ratio = 2.35
Savings ratio = 6%
6. Provide your recommendation based on the results of the above
ratios, ex: are they in good financial health, what about their liquidity,
what about their spending habits, should they seek to acquire more
debt, should they increase their savings.. Etc.
7. Answer the question as instructed.