PERSONAL FINANCIAL STATEMENTS
Jeri Macarena CASE STUDY
Jeri Macarena, 27, works as a reference librarian at the City Library. Jeri earns a salary of $47,000, which ought
to be enough money to live comfortably as a single person with no children. However, Jeri often feels strapped
for cash. Since graduating from college five years ago, Jeri has not worried too much about spending money.
Recently Jeri has seen several articles and advertisements about the wisdom of regularly saving for retirement
starting at an early age. How, Jeri wonders, is it possible to save anything when it seems there is never any
money left over after paying bills? Jeri has gathered information about bank accounts and investments. Jeri has
also tracked expenses for the past few months in order to better understand money habits. Jeri’s assets,
liabilities, and average monthly income and expenses are provided below.
ASSETS
LIQUID ASSETS
LOCATION
BALANCE
RATE OF
INTEREST
CHECKING
Bank of America
$567
N/A
SAVINGS ACCT.
National Credit Union
$670
0.50%
CASH ON HAND
Wallet
$ 50
N/A
INVESTMENT ASSETS
Cost
Security
#Shares
Date Acquired
Home Depot Stock
HD (ticker)
30
Royce Total Return
Fund
RYTRX (ticker)
1,000
City Library Retirement
Plan (fully vested)
Fidelity Freedom 2040
mutual fund
FFFFX (ticker)
1,758
06/15/2000
purchased with
graduation gift
money
09/07/2003
inherited from
John’s uncle
Purchased
monthly through
payroll deduction,
dividends
automatically
reinvested
Current Value
Per
Share
Total
Per
Share
Total
$56.50
$ 1,695
$40.48
$ 1,214
$ 9.97
$ 9,970
$12.60
$12,600
Average
$ 7.77
$13,660
$ 8.83
$15,523
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LIFESTYLE ASSETS
Asset
2004 Ford Focus
Stereo Equipment
TV
Market Value
$9,195
$150
$20
Computer Equipment
$200
Home furnishings
$950
Clothing, personal items
$200
LIABILITIES
LOANS
To whom
owed
Ford
Sallie
Mae
Original
Amount of
loan
$10,000
$40,000
Type of
loan
Interest
Rate
Current
Balance
Monthly
Payment
Car loan
Student
loan
5.9%
$6,670
$193
3.45%
$19,711
$395
Total #payments
60
120
CREDIT CARDS
Account
MBNA MasterCard
4897 XXXX XXXX XXXX
Citicorp Visa
4310 XXXX XXXX XXXX
Annual
Fee
$0
$0
Int.
Rate
18.9%
12.0%
Max.
Line Of
Credit
$5,000
$5,000
Outstanding
balance
$942
$1,574
Min. monthly
payment
Finance charges plusany
late fees, plus 1% of
outstanding balance
Finance charges plusany
late fees, plus 1% of
outstanding balance
The combined average minimum payment on Jeri’s credit cards is $61 per month.
Jeri Macarena would like you to help with setting up a balance sheet and an income statement. Every
month, Jeri has $585 in federal & state income taxes withheld, $300 in Social Security & Medicare
tax withheld, and pays $125 into a retirement plan. Jeri also has monthly interest income of $4.67.
Jeri’s monthly expenses are as follows:
Rent $950; Utilities (elec., heat, water) $120; Cell phone $40; Cable TV $50; Groceries $400;
Dining out & entertainment $300; Car payment $193; Car expenses (gas, repairs, maintenance) $100;
Car insurance $198; Student loan payments $395; Credit card payments for past charges $61;
Personal care expenses $25; Household purchases $50; Miscellaneous $50
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****************Your Assignment**********
Create an Income Statement & A Balance Sheet for Jeri Macarena.
The income statement should show both monthly and annual expenses.
The Balance sheet should show Assets – Liabilities = Net Worth.
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