Sub: Wealth Management – Personal Financial Statement

Calculate the required personal ratio form the given data of Mr. X

A. Calculate any 4 of the following (2 Mark each - total 8 Marks)

a. Basic Liquidity Ratio

b. Liquid Asset Coverage Ratio
c. Solvency Ratio
d. Current Ratio
e. Wage Dependency Ratio

B. Calculate any 4 of the following (3 Marks each - total 12 Marks)

a. Extended Liquidity Ratio

b. Financial Flexibility Ratio
c. Life Insurance Coverage Ratio
d. Balance Hedge Ratio
e. Net Cash Flow Ratio

1
 Statement of financial Condition Statement of changes in Net worth
as on on March 31, 20XX for the period April 01, 20XX - March 31, 20XX

Assets Realized increase in net Worth 335250

Salary 312500
Liquid assets 108750 Dividends and Interest Income 18750
Cash on hand 25000 Gain in stocks 4000
Money Market Mutual Funds 15000
Saving bank A/C 50000 Realized decrease in net Worth 183000
Other liquid Assets 18750 Income tax 26000
Interest exps 10000
Other Financial Assets 131250 Real Estate exps 12000
Certificate of Deposits 50000 Living Exps 135000
Bonds 25000
Fixed Deposits in Bank 25000 Unrealized Increase in Net worth 66250
Cash value of Life Insurance 31250 Gain on Marketable securities 10000
Residence 50000
Equity Assets 237500 Jewelry 6250
Stocks 175000
Mutual Funds 62500 Unrealized Decrease in Net worth 7000
Estimated additional tax payable 5000
Tangible Assets 562500 stock options 2000
Real Assets 562500

Personal Assets 3812500 Summary

Car 375000
Furniture 125000 Realized increase in net Worth 335250
Cloths and Jewelry 187500 Unrealized Increase in Net worth 66250
Home 3125000 Total increase in net worth 401500

Deferred Assets 475000 Realized decrease in net Worth 183000

Vested interest in Pension Plan 225000 Unrealized Decrease in Net worth 7000
PPF 250000 Total decrease in net worth 190000

Total Assets 5327500

Liabilities

Income tax 21000

Accounts Payable
Credit card Balance 25000
Mortgage 100000

Other Margin Account 33000

Total Liabilities 179000 Net increase in Net worth 211500

Net Worth at the start of the year 4937000
Net Worth 5148500 Net Worth at the end of the year 5148500

Note:
Rs. 6600 installment is paid every year
Rs. 10000 is paid towards mortgage very year
The person is insured for Rs. 10 lac
Personal Laibility Insurance is of Rs. 2.5 lac