Accounting: What the Numbers Mean 11th Edition by Wayne McManus,Daniel Viele,David Marshall

Exercise 8

Prepare a personal balance sheet and projected income statement; explain financial statement relationships.
Required:
a. Prepare a personal balance sheet for yourself as of today. Work at identifying your assets and liabilities; use rough estimates for amounts.
b. Prepare a projected income statement for yourself for the current semester. Work at identifying your revenues and expenses, again using rough estimates for amounts.
c. Explain how your projected income statement for the semester is likely to impact your financial position (i.e., balance sheet) at the end of the semester. (Note: You are not required to prepare a projected balance sheet.)d. Identify the major sources (and uses) of cash that you expect to receive (and spend) this semester. (Note: You are not required to prepare a projected statement of cash flows.)e. Give three possible explanations why a full-time college student might incur a substantial net loss during the fall semester of her junior year, yet have more cash at the end of the semester than she had at the beginning.