I have attached the key to part 1. But, I need the GOALS part completed. Please see attachments for both. You need to use Part 1 in order to answer the second part.
Points will be graded accordingly: Part I Income Worksheet 10 Income / Expense Worksheet 10 Net worth Statement 5 Part II Goals Worksheet 7.5 Ratio Calculations 7.5 Final Analysis 10 Total Points: 50 Income Worksheet - Tax Calculation to get AGI Filing status - Married Income #1 – Alexander’s Income $ 98,000 Income #2 – Theresa’s Income $ 49,000 Total Gross Income $ 147,000 Deductions Health Benefits (400 * 12) $ 4,800 401k #1 (150* 12) $ 1,800 401k #2 (100 * 12) $ 1,200 Property Tax $ 5,160 Student Loan #1 (250 * 12) $ 3,000 Student Loan #2 (250 * 12) $ 3,000 Adjusted Gross Income (AGI) $ 128,040 Standard Deduction $ 24,800 *AGI (Federal Taxable income) $ 103,240 Taxable income (begin Federal Tax Calculation below) $ 103,240 Federal Tax (use steps shown in class to calculate the tax in each tax bracket) $ 14,293 State Tax (taken out of W-2 income per paycheck, calculate based on total gross income) $ 7,350 FICA Tax (taken out of W-2 income per paycheck, calculate based on total gross income) $ 11,245 Total Tax Owed/Paid $ 32,888 Child Tax Credit $ 4,000 Total Tax Paid (after credit) $ 28,888 Taxable Income – Total Tax paid = $ 74,352 + Standard Deduction +$ 24,800 **Total Income to carry over to Budget $ 99,152 Please show your work HERE on how you calculate the Federal Tax using the bracket method shown in class. Show FICA and STATE calculations as well. ROUND each calculation to the nearest WHOLE DOLLAR. Taxable Income: 103,300 Married: Federal 0 – 19,750 (10%) = 1,975 19,751 – 80,250 (12%) = 7,260 80,251 – 103,240 (22%) = 5,058 Total:14,293 State: Alexander and Theresa 98,000 * .0549,000 * .05 4,800+2,400 Total: 7,350 FICA: Alexander and Theresa 98,00049,000 * 0.0765* 0.0765 7,344 +3,672 Total: 11,245 *AGI - Adjusted Gross Income after reducing income by tax deductions and standard deduction. **Income to carry over to the budget includes the amount of the standard deduction, as this money was not spent or lost, merely reduced for a tax calculation Income / Expense Statement (Budget) MUST HAVE BOTH COLUMNS – ALL THE WAY DOWN Monthly Annually Income carried over from budget 8,26299,152 Fixed Expenses Mortgage payment 1,850 22,200 Homeowners’ Association 320 3,840 Property Tax 0see income statement – deduction from income Gas, electricity, water 185 2,220 Streaming/Internet & cell phone 175 2,100 Car Payment 350 4,200 Life insurance 40 480 Car insurance 92 1,100 Homeowner’s insurance 175 2,100 Total Fixed Expenses $ 3,187 38,244 Variable Expenses Food (groceries) 650 7,800 Food (eating out) 275 3,300 Childcare 250 3,000 Additional babysitting 150 1,800 Entertainment 175 2,100 Disney Passes 140 1,680 Car maintenance/gas 275 3,300 Baby supplies/ diapers 200 2,400 Doctor Office Visits & RX 67 800 Haircuts 100 1,200 Clothing and misc. 400 4,800 Repairs 67 800 Debt/credit card payments 200 (*6 mos) 1,200 Total Variable Expenses$ 2,94934,180 Savings for goals Emergency Fund Savings 50 600 Bikes for the twins 50 (*3) 150 Summer vacation 200(*11) 2,200 Concert Tix 100 1,200 Disney Cruise 266 3,192 New TV 50 600 Truck Tires 75 900 Down Payment Home 646 7,752 College Savings 100 1,200 Retirement 250 3,000 Total Savings for Goals$1,786 20,794 **Do not subtract goal savings as variable expenses because the money wasn’t spent yet INCOME - (FIXED + **VARIABLE EXPENSES) = $ 2,126$25,512 (COMPARE FINAL CALCULATION TO SAVINGS GOALS TOTALS: Do they match, loftier goals than actual money, more money available than goal savings? How can you work this into your final analysis for advice for the Stephens? How can they reach their goals and stay within their income?) Net Worth Statement Net Worth = Total Assets - Liabilities Monetary Assets Investment assets: 401K - $42,000, College savings mutual fund $2,650, stock fund $250 Liquid assets: Savings account - $3,750 Total monetary assets: $48,650 Physical Assets Home 585,000Furnishings 9,000 Toyota 8,000Honda 20,000 Personal Belongings 16,000 Total physical assets: $ 638,000 TOTAL ASSETS$ 686,650 Liabilities Home 363,000 Honda 4,200 Student Loans 32,000 Pottery Barn Credit Card 1200 TOTAL LIABILITIES$ 400,400 TOTAL NET WORTH$286,250 (686,650 – 400,400) Goals – TVM Problems basically Work must be shown as the examples demonstrate You need to vary your savings vehicle used and research appropriate interest rates expected from chosen investment vehicle. SHORT TERM GOALS Goal Amount Needed Month/Year needed Date Saving Starts # of Months to save Interest Rate Earned Savings Vehicle Used Monthly Amount to Save Bikes $150 Vacation $2200 June 2022 July 2021 11 1.25% Savings Account $? Concert Tix $1200 Ex. Vacation: Complete calculation and replace “?” with actual money value in Goal Chart. TVM Calculator PV = 0 Payment = ? FV = 2200 Interest Rate = 1.25 Periods = 11 Compound monthly INTERMEDIATE GOALS Goal Amount Needed Month/Year needed Date Saving Starts # of Months to save Interest Rate Earned Savings Vehicle Used Monthly Amount to Save Cruise $6,500 June 2023 July 2021 24 1.8 % CD $? TV $600 Tires $900 Ex. Cruise: Complete calculation and replace “?” with actual money value in Goal Chart. PV = 0 Payment = ? FV = 6,500 Rate 1.8 Period = 24 months Compounding monthly LONG TERM GOALS Goal Amount Needed Month/Year needed Date Saving Starts # of Months to save Interest Rate Earned Savings Vehicle Used Monthly Amount to Save Home-down $40,000 College $110,000 August 2035 September 2019 192 (16 yrs x 12 mos) 10% Mutual Funds Retirement Age 32 Age 65 Mutual Funds & Stocks Ex. College: Complete calculation and replace “?” with actual money value in Goal Chart. PV = 2650 Payment = ?(Is $100 enough?) FV = 110,000 Rate = 10 Period = 192 Compounding monthly You can create your own goal spreadsheet. Please do not add in any additional or modify the goals provided. From the many ways we’ve learned to invest, goals should reflect how to save/earn the most over time to reach the goals successfully. DO NOT COPY FROM THE EXAMPLES FOR INVESTMENT VEHICLES, there are varying ways to invest for the best possible outcome of growing money. Financial Ratios Measures of Current Financial Status: This is semi-guided to assist you. You should have 5 values for this section. 1. Consumption-to-Income Ratio: amount of spending from one's budget divided by disposable income (Recommended: approx. 70-90% if using 10/20/70 Budget) · Fixed spending + Variable spending = Total spending · Total spending divide by the total disposable income (carry over, first line on the budget) 2. Basic Liquidity Ratio: amount of time, in months, a family can meet its expenses with its monetary assets (liquid assets in savings and checking – Assume their monthly income is direct deposited into their checking account.) To find, add up all liquid assets and divide by monthly expenses. This is NOT a percentage. (Recommended: 3 to 6 months) · Savings divide by total monthly expenses: Measures of Debt Burden: 3. Consumer Debt- Service Ratio: credit card and auto/car debt repayments by your disposable income, expressed in a Monthly figure (Recommended: < 11%)="" ·="" 2="" amounts="" to="" use="" here="" .="" .="" .="" 4.="" annual="" debt-service="" ratio:="" same="" as="" above="" plus="" one's="" mortgage="" payment,="" expressed="" yearly.="" (recommended:="">< 40%="" for="" homeowners;="">< 15% if renting) measures of progress toward goals: use the values you found on the goals chart using tvm and investment savings vehicle - not the values from the narrative, so answers here will vary by group. 5. long-term savings-to-income ratio: take the amount one is saving for long-term goals such as college and retirement and divide by disposable income (monthly or 15%="" if="" renting)="" measures="" of="" progress="" toward="" goals:="" use="" the="" values="" you="" found="" on="" the="" goals="" chart="" using="" tvm="" and="" investment="" savings="" vehicle="" -="" not="" the="" values="" from="" the="" narrative,="" so="" answers="" here="" will="" vary="" by="" group.="" 5.="" long-term="" savings-to-income="" ratio:="" take="" the="" amount="" one="" is="" saving="" for="" long-term="" goals="" such="" as="" college="" and="" retirement="" and="" divide="" by="" disposable="" income="" (monthly="">