I need it analyses please

 

Don't use plagiarized sources. Get Your Custom Essay on
I need it analyses please
Just from $13/Page
Order Essay

The Gordons’ Version of Financial Planning

 

Burt and Emily Gordon are a married couple in their mid-20s. Burt has a good start as a bank manager and Emily works as a sales representative. Since their marriage 4 years ago, Burt and Emily have been living comfortably. Their income has exceeded their expenses, and they have accumulated an enviable net worth. This includes the $10,000 that they have built up in savings and investments. Because their income has always been more than enough for them to have the lifestyle they desire, the Gordons have done no financial planning.

 

Emily has just learned that she’s 2 months pregnant. She’s concerned about how they’ll make ends meet if she quits work after their child is born. Each time she and Burt discuss the matter, he tells her not to worry because “we’ve always managed to pay our bills on time.” Emily can’t understand his attitude, because her income will be completely eliminated. To convince Emily there’s no need for concern, Burt points out that their expenses last year, but for the common stock purchase, were about equal to his take-home pay. With an anticipated promotion to a managerial position and an expected 10% pay raise, his income next year should exceed this amount. Burt also points out that they can reduce luxuries (trips, recreation, and entertainment) and can always draw down their savings or sell some of their stock if they get in a bind. When Emily asks about the long-run implications for their finances, Burt says there will be “no problems” because his boss has assured him that he has a bright future with the bank. Burt also emphasizes that Emily can go back to work in a few years if necessary.

 

Despite Burt’s arguments, Emily feels that they should carefully examine their financial condition in order to do some serious planning. She has gathered the following financial information for the year ending December 31, 2012.

 

 

Salaries

 

Take-home Pay

 

Gross Salary

 

Burt

 

$44,200

 

$64,000

 

Emily

 

25,048

 

36,000

 

Item

 

 

 

Amount

 

Food

 

 

 

$ 5,902

 

Clothing

 

 

 

2,300

 

Mortgage payments, including property taxes of $1,400

 

 

 

11,028

 

Travel and entertainment card balances

 

 

 

2,000

 

Gas, electric, water expenses

 

 

 

1,990

 

Household furnishings

 

 

 

4,500

 

Telephone

 

 

 

640

 

Auto loan balance

 

 

 

4,650

 

Common stock investments

 

 

 

7,500

 

Bank credit card balances

 

 

 

675

 

Federal income taxes

 

 

 

19,044

 

State income tax

 

 

 

4,058

 

Social security contributions

 

 

 

7,650

 

Credit card loan payments

 

 

 

2,210

 

Cash on hand

 

 

 

85

 

2007 Nissan Sentra

 

 

 

15,000

 

Medical expenses (unreimbursed)

 

 

 

600

 

Homeowner’s insurance premiums paid

 

 

 

1,300

 

Checking account balance

 

 

 

485

 

Auto insurance premiums paid

 

 

 

1,600

 

Transportation

 

 

 

2,800

 

Cable television

 

 

 

680

 

Estimated value of home

 

 

 

185,000

 

Trip to Europe

 

 

 

5,000

 

Recreation and entertainment

 

 

 

4,000

 

Auto loan payments

 

 

 

2,150

 

Money market account balance

 

 

 

2,500

 

Purchase of common stock

 

 

 

7,500

 

Addition to money market account

 

 

 

500

 

Mortgage on home

 

 

 

148,000

 

 

Critical Thinking Questions

 

1.   Using this information and Worksheets 2.1 and 2.2, construct the Gordons’ balance sheet and income and expense statement for the year ending December 31, 2010.

 

2.   Comment on the Gordons’ financial condition regarding (a) solvency, (b) liquidity, (c) savings, and (d) ability to pay debts promptly. If the Gordons continue to manage their finances as described, what do you expect the long-run consequences to be? Discuss.

 

3.   Critically evaluate the Gordon’s approach to financial planning. Point out any fallacies in Burt’s arguments, and be sure to mention (a) implications for the long term as well as (b) the potential impact of inflation in general and specifically on their net worth. What procedures should they use to get their financial house in order? Be sure to discuss the role that long- and short-term financial plans and budgets might play.

 

 

 

 

 

 and i need anlayses

Place Order
Grab 16% Discount On This Paper
Pages (550 words)
Approximate price: -

Why Choose Us

Quality Papers

We value our clients. For this reason, we ensure that each paper is written carefully as per the instructions provided by the client. Our editing team also checks all the papers to ensure that they have been completed as per the expectations.

Professional Academic Writers

Over the years, MyEssay.Help has managed to secure the most qualified, reliable and experienced team of writers. The company has also ensured continued training and development of the team members to ensure that it keep up with the rising Academic Trends.

Affordable Prices

Our prices are fairly priced in such a way that ensures affordability. Additionally, you can get a free price quotation by clicking on the "Place Order" button.

On-Time delivery

We pay strict attention on deadlines. For this reason, we ensure that all papers are submitted earlier, even before the deadline indicated by the customer. For this reason, the client can go through the work and review everything.

100% Originality

At MyEssay.help, all papers are plagiarism-free as they are written from scratch. We have taken strict measures to ensure that there is no similarity on all papers and that citations are included as per the standards set.

Customer Support 24/7

Our support team is readily available to provide any guidance/help on our platform at any time of the day/night. Feel free to contact us via the Chat window or support email: support@myessay.help.

Try it now!

Grab 16% Discount On This Paper

We'll send you the first draft for approval by at
Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

MyEssay.help has stood as the world’s leading custom essay writing services providers. Once you enter all the details in the order form under the place order button, the rest is up to us.

Essays

Essay Writing Services

At MyEssay.help, we prioritize on all aspects that bring about a good grade such as impeccable grammar, proper structure, zero-plagiarism and conformance to guidelines. Our experienced team of writers will help you completed your essays and other assignments.

Admissions

Admission and Business Papers

Be assured that you’ll definitely get accepted to the Master’s level program at any university once you enter all the details in the order form. We won’t leave you here; we will also help you secure a good position in your aspired workplace by creating an outstanding resume or portfolio once you place an order.

Editing

Editing and Proofreading

Our skilled editing and writing team will help you restructure you paper, paraphrase, correct grammar and replace plagiarized sections on your paper just on time. The service is geared toward eliminating any mistakes and rather enhancing better quality.

Coursework

Technical papers

We have writers in almost all fields including the most technical fields. You don’t have to worry about the complexity of your paper. Simply enter as much details as possible in the place order section.

                                                                                     Place Order macbook tamir - mersin escort - casino-masino.com - bahis