Rich and Ruby Case Study Case Study example
College
Case Study
Finance & Accounting
Pages 4 (1004 words)
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Name: Instructor: Course: Date: Rich and Ruby Case study According to the case study Rich and Ruby are happily married couples blessed with two children Alvin and Katie. Rich’s parents Henry and Harriet have been married for 55years and have two children Rich and Rebecca whom they intend to give their share of the inheritance once they have passed away…

Introduction

The trust is designed to remain in place for the benefit of Harriet and be distributed equally between Rich and Rebecca when Harriet dies. According to the financial statements, Rich and Ruby have a net worth of $22,000,000 at their disposal which comprises various assets and cash and cash equivalents. Rich is involved actively in the family business and is concerned fully about the welfare of his children and their children. Rich also plans to pay for Katie’s remaining education balance for two years to finish her doctorate degree in bio-gastric anthropology and strongly believes that the world is not yet fully exploited by people with opportunities. Rich also plans to support Caryn, Katie’s life partner even though Ruby his wife and Alvin his son do not approve of the relationship. Rich is in a good financial position with the company’s net annual income of $750,000 and a salary of $200,000 annually. The fact also that the company is worth $8,000,000 and is expected to grow at an annual rate of 10% for the next 6 to 8 years makes it advantageous for Rich to use the finances at his disposal and allocate them effectively and efficiently. Rich also owns the building in which the Macadam company operates valued at $3,000,000 and is leased for $250,000. ...
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