PERSONAL BALANCE SHEET AS AT: 14 February 2022 Assets Checking Account A R15 000.00 Savings Account A R35 000.00 Allan Gray Equity Fund R150 000.00 Allan Gray Money Market Fund R240 000.00 Retirement Annuity Fund R575 000.00 Kruger Rands R12 000.00 Property (Home) R2 500 000.00 Other Material Assets R300 000.00 Vehicle R120 000.00 Total Assets R3 947 000.00 Liabilities Credit Card A R55 000.00 Clothing credit accounts R65 000.00 Vehicle Loan R75 000.00 Home Mortgage R1 800 000.00 Total Liabilities R1 995 000.00 PERSONAL INCOME STATEMENT Income (Monthly) Salary (Net) 45 000 Other Income 12 000 Total Income 57 000 Expenses (Monthly) Utilities 3 000 Food 5 000 Internet 700 Cell Phone 500 Medical aid 4 500 Home insurance 1 200 Life policies 2 500 Mortgage payments 25 000 Vehicle Loan payments 6 000 Other loan payments 6 000 Retirement annuity contributions 2 000 Total Expenses 56 400 1.1. Based on the balance sheet, what is the net worth of your client? (3) A. R1 952 000 B. R3 947 000 C. R2 147 000 D. R1 362 000 E. None of the above 1.2. Based on the income statement, what is your client's expense ratio? (3) A. 0.99 B. 1.25 C. 1.01 D. 0.80 E. None of the above
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1. To calculate the net worth of the client, we need to subtract the total liabilities from the total assets. Total Assets = R3 947000.00 Total Liabilities = R1 95000.00 Net Worth = Total Assets - Total Liabilities Net Worth = R3 947000.00 - R1 95000.00 Net Show moreā¦
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