4.2.4.3 Example of Balance Sheet and Income Statement
Just like a business, an individual’s financial situation may be analyzed by understanding her balance sheet and income statements. Let’s look at Tricia’s financial statements:
|
Balance Sheet |
|
|
Assets |
|
|
Marketable securities (stocks, ETFs, and mutual funds) |
120,000 |
|
Cash, CDs, and money market funds |
20,000 |
|
Treasury securities |
60,000 |
|
House |
400,000 |
|
Belongings |
10,000 |
|
Car |
20,000 |
|
Total Assets |
$630,000 |
|
Liabilities |
|
|
Mortgage |
150,000 |
|
Utility bills |
800 |
|
Personal loans |
5,000 |
|
Total Liabilities |
$155,800 |
|
NET WORTH |
$474,200 |
|
Monthly Income Statement |
|
|
Monthly Income |
|
|
Salary net of taxes |
4,800 |
|
Other income |
200 |
|
Total Income |
$5,000 |
|
Monthly Expenditures |
|
|
Mortgage payment |
1,500 |