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Financial - Case Study Example
Finance & Accounting
Pages 8 (2008 words)
Case study Name: Institution: The Potential Problem That Ann And Jack May Face The currents status of the financial position of Ann and Jack is apparently stable with surplus of USD 2,087. All expenses are being met successfully. However, the current situation is showing no problem for the fact that family is currently managing payments by only paying percentage of their total expenses…
It is noteworthy that family is though enjoying the current ease of payments but is piling up debt that will move beyond the capacity of the family in future. Major pressures will be piled up from regular home installment, investment unit’s huge payment that is also not offering redraw facility, credit card that is piling up with regularity. The dividends from the stocks that Ann inherited are already recognized as franked and so cannot be relied for payment of certain of such debt. One aspect that identifies the issues is the capital appreciation from stocks in three years is 2.2% only. This percentage appears worthless as it is multiple to the percentage payable on the investment unit. Also investments made by the family are not generating the notable income such as tenant income from investment unit is running in deficit of USD 134 after meeting expense of interest. Two children are still to gain the higher education, the price of which is constantly on rise due to economic pressures. ...