| Fred & Ethel Mertz |
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| Fred & Ethel, long time residents of San Antonio, have asked you to prepare a |
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| personal financial statement for them, for use in getting loans to pay for the |
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| college expenses of their children. You your staff prepare the following summary |
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| of their grocery bag of fiancial materials: |
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| Totals | |||||||||||
| 1. | Life insurance | Policy 1 | Policy 2 | Policy 3 | Policy 4 | ||||||
| Insured | Fred | Ethel | Fred, Jr. | Susie | |||||||
| Owner | Fred | Etel | Fred, Jr. | Ethel | |||||||
| Beneficiary | Ethel | Fred | Ethel | Ethel | |||||||
| Death benefit | 350,000 | 150,000 | 25,000 | 17,500 | |||||||
| Cash value | 38,300 | 14,200 | 12,950 | 11,825 | |||||||
| 2. | Cash and near cash items | ||||||||||
| First National bank household checking |
1,751 | ||||||||||
| ABC Bank of Commerce, passbook savings account |
26,500 | ||||||||||
| Fred, Jr.’s college fund account under the Texas |
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| Uniform Gift to Minors | 68,600 | ||||||||||
| Business checking account at First National |
11,255 | ||||||||||
| 3. | Balnces owed on credit cards | ||||||||||
| VISA | 12,655 | ||||||||||
| Master Card at Chase | 2,151 | ||||||||||
| Master Card at Citi | 763 | ||||||||||
| American Express | 125 | ||||||||||
| Target Card | 2,300 | ||||||||||
| Sam’s Discover Card | 210 | ||||||||||
| 4. | Car loans | Cost | Fair value | Loan balance | |||||||
| ABC Bank of Commerce (2011 Jeep Wrangler) |
26,150 | 21,500 | 18,755 | ||||||||
| Ft. Sam Houston CU (2010 Ford Image) | 41,000 | 32,000 | 35,700 | ||||||||
| 5. | Mortgage loan balance on residence | 187,000 | |||||||||
| Mortgage loan balance on beach property/cabin |
18,726 | ||||||||||
| 6. | Diamond ring, cost $8,500 in 1990. Appraised at |
8,500 | 17,700 | ||||||||
| Diamond & ruby ring, inherited from great grandmother |
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| in 1995 | 9,000 | 12,000 | |||||||||
| 7. Furniture, equipment, household appliances, guess at cost |
20,000 | ||||||||||
| 8. | House, 3,250 square feet under roof, 1/3 acre lot in Shaveno |
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| Park Estates, purchased 1992 for $271,000 |
271,000 | 410,500 | |||||||||
| 9. | Beach property/cabin purchased for $17,500 in 1989 |
27,500 | 120,000 | ||||||||
| 10. | 401-K at Fred’s firm | 85,000 | 318,900 | ||||||||
| Common stocks, bonds, etc. | Cost | 191,500 | 223,981 | ||||||||
| CD at Shelby Credit Union | 100,000 | 100,000 | |||||||||
