Name: _____________________________________

Using the information provided, analyze for Jennifer Barry’s financial situation by answering the following questions. YOU MUST SHOW ALL CALCULATIONS FOR FULL CREDIT ON ALL CALCULATION PROBLEMS, NOT JUST THE ANSWER.

Conclude the assignment by writing a 1-2 paragraph summation (or minimum of 6 sentences) and recommendation based on your answers. (15)

1. Create a balance sheet as of April 1, 2022. (10)

2. Create a cash flow statement for the period, April 1 – April 30, 2022. (10)

3. What is Jennifer’s monthly surplus (if any)? (2)

4. What is her asset to debt ratio? (2)

5. What is her savings ratio? (2)

6. How much does Jennifer need in her 3-month emergency fund? (5)

7. Assume at the end of 2022, Jennifer’s taxable income is $22,000.

What is her marginal tax rate?

What is her effective tax rate?

What is the tax liability on her taxable income? (5)

8. Jennifer participates in her employer’s 401K retirement plan. How much did

Jennifer contribute to her 401K in 2022? (assume January through December)

How much did her employer contribute? (assume January through December) (5)

9. How much is the total contribution(s) made into Jennifer’s 401K account for2022? (4)

10. Using the “current balance” (as of January 2022) as a starting point, and Jennifer’s monthly contributions (only), what will be the balance in the 401K account in 1 year? (2)

11. What does Jennifer’s credit score say about her? How should she handle theerror on her credit report? (describe the steps in detail) (2)

12. Compute the implications of the car dealer’s offer on the car that Jennifer isconsidering. If she decides to purchase the 3-year old Honda, what would be the monthly (new) loan payment (taking into consideration the current loan outstanding on the 7 year Ford and its current value)? Is this a deal worth considering? Why or why not? (3)

13. What kind of investor is Jennifer? Explain her investment philosophy. Doesher current investments match her philosophy? Why or why not? (3)

14. Analyze the Twitter stock information given. What does the followinginformation tell about the stock:

The stock’s Beta

The stock’s EPS

The stock’s PE Ratio (5)

15. Would you advise Jennifer to invest in Twitter stock? Why or why not? (5)

16. (TVM) Based on the information provided, how long will it take for Jennifer to pay off: (10)

(a) her 2014 Kia Forte car?

(b) her credit card balance?

(c ) her student loan?

17. Based on the information provided, compute the following: (10) (a) Jennifer’s anticipated monthly mortgage payment on the home purchase (b) how much will be in Jennifer’s 401K account in 40 years when she retires

(c) how much would Jennifer need to invest today (one-time) to accumulate the20% down payment for the condo in 5 years if she can get a rate of return of 7%?

(d) Factoring in the current savings balance, how much would Jennifer need toput away today (one-time) to accumulate the $5,000 into her savings account within 1 year? Based on her current financial obligations, is this a realistic goal? Why or why not?