StudentShare solutions
Triangle menu

Personal Budget, Balance Sheet, and Cash Flow Statement - Essay Example

Nobody downloaded yet

Extract of sample
Personal Budget, Balance Sheet, and Cash Flow Statement

The assets should be equivalent to the liabilities of the individual. Some examples of assets that are included in the balance sheet include the real estate, the checking accounts, savings accounts, cash value of life insurance, vehicles, money market investments and jewelry. Liabilities represent the obligations of the individual such as consumer debts, student loan debts, car loans and outstanding mortgage repayments. Personal cash flow statement will measure the individual cash inflows and outflows in order to determine the net cash flow for a specific period of time. Personal cash inflow will mainly include the salaries and wages, the interests from savings, the dividends received from invested funds and the capital gains that may be realized from the sale of bonds or common stocks. The expense or cash outflows will include the rent paid like house rent, car rental fees, mortgage repayments, utility bills, the entertainment expenditure, and groceries utilized by the individual for the specific period of time. Introduction Below are the personal budget, cash flow statement and balance sheet of Sophia. In order to prepare the above financial statements, it is important that we understand the client age, the spouses, and dependants of the client. It is also important to factor the educational background, the income status of the client and spouse, and the major goals of the client. The objectives of Sophia are to save money for unexpected expenses, provide for long-term expenditure such as retirement, and educate her dependants (Stovall & Maurer, 2011). Another objective is to earn adequate income from her savings in order to be able to subsidize the low income from employment (Stovall & Maurer, 2011). Sophia is married to Peter and both have a two-year-old daughter who is not currently enrolled in any school. Sophia is currently pursuing her bachelor of accounting degree on part-time basis, and she is employed in a local charity organization. Her monthly income is $ 1,500 while Ken is a graduate of Finance and is currently working in the hospitality industry with a monthly income of $ 2,000. The two major concerns are to save for retirement and education of their daughter. Below is the monthly personal budget of Sophia The financial goals are to avoid debt and increase the emergency funds so that they can accrue money for their daughter’s education and save for retirement. Amount in dollars (US $) Amount in dollars (US $) Expected income Salary (Sophia and Peter) 3,500 Interest on savings deposits 50 Interest on investments 40 Total monthly expected income 3,590 Projected Fixed monthly expenditure Student loan repayments 150 Car insurance 40 Investment savings 450 Mortgage loan repayments 500 Car loan repayment 90 Student loan 80 Life insurance 50 Total fixed expenditure (1,360) Projected variable monthly expenditure Food 1,000 Telephone, water and electricity 100 Clothing 200 Fuel and car maintenance 250 Entertainment 200 Donations and gifts 50 Total projected variable expenditure (1,800) Expected monthly savings 430 From the above personal budget, Sophia will have a net savings of $ 380 that she can utilize in meeting her financial goals and objectives. Below is the balance sheet of Sophia as at the end of the 30th September 2012. Sophia’s personal balance sheet as at 30th September 2012 Amount in US dollars Amount in US doll ...Show more


Name: Institution: Abstract A personal budget is mainly a spending plan of an individual. The personal budget identifies the sources of finance and how the finances will be allocated to different expenditure during a specific period of time. Some items included in a personal budget are rental expenditure, groceries, debt repayments and entertainment expenditure…
Author : eugenebahringer
Personal Budget, Balance Sheet, and Cash Flow Statement essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Personal Budget, Balance Sheet, and Cash Flow Statement"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

Balance sheet
Introduction This study entails about the balance sheet and its components. Balance sheet is a type of financial statement prepared by all the business organisations to represent its financial position at a particular point of time when the balance sheet is prepared by them.
10 pages (2500 words) Essay
Income statement and balance sheet
Due to the importance of these capital markets there is a need for professionals dedicated to financial reporting. Publicly traded companies have to prepare financial statements every accounting period.
3 pages (750 words) Essay
Mini Case: Financial Statement and Cash Flow
It takes into consideration the company’s investments in capital expenditures that are critical in maintaining sustained growth. Basically, free cash flow is expressed as cash from operations net of capital expenditures necessary to maintain company’s growth.
6 pages (1500 words) Essay
Mini Case: Financial Statement and Cash Flow
The calculation of free cash flow is important as it helps the company to understand the opportunities and scopes which will enable to maximize the shareholder’s wealth. The calculation of free cash flow is mentioned below: Free Cash Flow= Earnings before Interest and Tax (1-Tax Rate) + Depreciation – Total Change in the Net Working capital – Capital Expenditure Calculation of Free Cash flow Particulars Amount(in $) EBIT 13119000 Depreciation 800000 Tax Rate 34% Change in Fixed assets 2932000 Changes in Current assets 4530181 Changes in Accruals 150000 Changes in Accounts Payable 190000 Changes in Net Working Capital 4168181 Capital Expenditure 7802181 Free Cash Flow -2511822 The free
6 pages (1500 words) Essay
Cash Flow Statement
Cash flows exclude movements between the items that constitute cash or cash equivalent because these are part of the cash management of an enterprise rather than part of its operating investing and financing activities. Primary objective of the cash flow statement is to provide information regarding the cash receipts and cash payments of an enterprise for an accounting period.
2 pages (500 words) Essay
Cash Flow
The statement of cash flow is a critical document for any company as it shows the company’s rate of return and value (Dreyer, Erasmus, Morrison, & Hamman, 2013). It also
2 pages (500 words) Essay
Cash Flow
The direct versus indirect cash flows are only dealt with by the operations section. One can be able to identify, through the comparison between the operations
1 pages (250 words) Essay
Analysis of balance sheet and income statement
Other factors included in the paper are the products offered, the key market, and the ratio analysis (ROCE and debt/equity ratio). AMEC plc, headquartered in London, United Kingdom, was established in 1982. The company offers consultancy,
2 pages (500 words) Essay
Pro Forma Income Statement and Balance Sheet
This paper applies and discusses the percentage of sales method to financial forecasting for the financial statements of Garmin, Inc. The first step is to express the Balance Sheet and
2 pages (500 words) Essay
Cash Flow Statement Analysis
It is used for the basis of business planning and budgeting. Below is the overall professional comparison of the five companies that were selected for the project. The overall comparison is for the three activities, however, it focuses more on the operating activities
5 pages (1250 words) Essay
Hire a pro to write
a paper under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
Comments (0)
Click to create a comment
Let us find you another Essay on topic Personal Budget, Balance Sheet, and Cash Flow Statement for FREE!
Contact us:
Contact Us Now
  • About StudentShare

  • Testimonials

  • FAQ

  • Blog

  • Free Essays
  • New Essays
  • Essays

  • The Newest Essay Topics
Join us:
Contact Us