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You are a business owner (sole proprietor) who is applying for a new business lo

ID: 2469543 • Letter: Y

Question

You are a business owner (sole proprietor) who is applying for a new business loan. As part of the bank's application process, you are required to put together a personal balance sheet. You can consider retained earnings and net worth to be interchangeable.

Personal Details

Company checking account balance: $9,372.58

Joint (with spouse) checking account balance: $5,649.75

401(k) account with old employer balance: $62,952.75

Roth IRA account balance: $8,328.96

Spouse's rollover IRA account balance: $32,697.65

Spouse's 401(k) account with current employer: $11,800.35

Home value: $212,500, remaining mortgage balance: $147,937.50

Visa credit card balance: $7,736.00

Capital One credit card balance: $2,562.38

Walmart credit card balance: $416.98 2008

Ford F150: blue book value $8,750 2013

2012 Toyota Camry: blue book value $21,300. 20 payments of $422.18 remaining

Explanation / Answer


Balance Sheet

Company checking account balance:

401(k) account with old employer balance:

Roth IRA account balance:

Spouse's rollover IRA account balance:

Ford F150: blue book value

Liabilities Assets Home mortgage $147,937.50

Company checking account balance:

$9,372.58 Camry payments remaining $422.18 Joint (with spouse) checking account balance: $5,649.75 Home value: $212,500

401(k) account with old employer balance:

$62,952.75

Roth IRA account balance:

$8,328.96

Spouse's rollover IRA account balance:

$32,697.65 Spouse's 401(k) account with current employer: $11,800.35

Ford F150: blue book value

$8,750 2012 Toyota Camry: blue book value $21,300. 20 Walmart credit card balance: $416.98