Download Law for Business

Stock Market Analysis and
Personal Finance
Mr. Bernstein
Personal Financial Statement,
pp 65-73
September 2017
Stock Market Analysis
& Personal Finance
Mr. Bernstein
Personal Balance Sheet
Net Worth = Assets minus Liabilities (~=Shareholders
Equity)
Liquid Assets may include checking or savings accounts
Long-term Assets may include house, car, furniture,
electronics, collectibles or Investments
Current Liabilities include bills due in <90 days
Long-term Liabilities include house mortgage or car
loans, student loans
2
Stock Market Analysis
& Personal Finance
Mr. Bernstein
Personal Cash Flow Statement
Income is likely your takehome pay from your job(s),
may include dividends or interest from
Investments or Savings account
Expenses can be recurring expenses such as rent,
food, car insurance or utilities
Expenses can also be discretionary expenses such as
vacations, clothes or restaurants
3
Stock Market Analysis
& Personal Finance
Mr. Bernstein
Evaluate Your Financial Progress
Debt ratio: Liabilities / Net Worth
Liquidity ratio: Liquid Assets / Recurring Expenses
Debt Coverage: Takehome pay / Monthly debt
payments
Savings ratio: Amount saved each month / Gross
monthly income
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