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A person is applying for a loan to start up a new small business. His bank has a

ID: 2766832 • Letter: A

Question

A person is applying for a loan to start up a new small business. His bank has asked him for a personal balance sheet and monthly income statement in order to qualify him for the loan.    Please create a Balance Sheet and Income Statement from the information below that has been provided to you.

Credit Card Balance of $500 - Monthly Payment $100

Clothing $100 Spent Per Month

Recreation and Entertainment $250 Spent Per Month

Savings Account $5000

Utilities $200 Spent Per Month

Stereo Worth $1000

TV Worth $1000

Rent Payment $500 Spent per month

Monthly Income $1500 (Take Home Pay)

Cash $2500

Car Worth $15,000 Loan on Car $9500 Monthly Payment $250

Furniture Worth $2500

Food $250 Spent Per Month

Monthly Rental Income (Marty rents a house that he owns in Orlando, FL) $700

Rental House in Orlando, FL is worth $50,000

                       Balance Sheet and Income Statement Template

Balance Sheet

Income Statement

Assets:

Monthly Income

Total Income

Total Assets:

Monthly Expenses

Liabilities:

Total Liabilities:

Net Worth/Owner's Equity:

Total Expenses

Total Liabilities & Net Worth

Cash Surplus (Profit)

Balance Sheet

Income Statement

Assets:

Monthly Income

Total Income

Total Assets:

Monthly Expenses

Liabilities:

Total Liabilities:

Net Worth/Owner's Equity:

Total Expenses

Total Liabilities & Net Worth

Cash Surplus (Profit)

Explanation / Answer

INCOME STATEMENT

BALANCE SHEET

Monthly Income Amount ($) Take Home Pay 1500 Rental Income 700 Total Income 2200 Monthly Expenses Credit Card 100 Clothing 100 Recreation and Entertainment 250 Utilities 200 Rent Payment 500 Loan  Payment 250 Food 250 Total Expenses 1650 Profit 550
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