A firms financial statements provide a visual representation of the business to stakeholders inside and outside the firm. Analyzing the financial statements helps managers carry out several important tasks.How would you go about evaluating your personal financial statement?
Directions: class discussion and a classmate response A firms financial statements provide a visual representation of the business to stakeholders inside and outside the firm. Analyzing the financial statements helps managers carry out several important tasks.Initial PostThink about how you would do budget planning and figuring out your net worth, and share your approach. How would you go about evaluating your personal financial statement? You may look at your bank and credit card statements. What else would you look at and why? What information can you glean from the statements? How do you budget? Important note: do not share your personal information, just your methodology.Reply PostRespond to one classmates post. Comment on your classmates budget planning process. What is something new you learned that you could apply to your situation? Offer a suggestion or practice you use to improve the process.8/22/23, 8:02 PM Net WorthI would consider personal net worth as if I were to leave this earth tomorrow, what would my family be left with? Since my daughter was born, I have tried to ensure that my 401K, life insurance, and savings would cover my debts and burial expenses and leave her with some extra to cover her schooling or start her own investments. When looking at my bank statements, savings would all be considered an asset. My checking would still be an asset only you have to subtract any outstanding debts that may have been authorized prior to the period but not actually withdrawn. Credit cards I do not consider an asset, while they have value and purchase power to me now if something happens to me; the debt would need to be paid and the credit available does not pass onto my family. BudgetMy family budgets monthly and for big-ticket items such as Christmas or vacation. The biggest thing that helped me keep to a budget, is breaking out household expenses such as soap, shampoo and cleaning supplies from groceries. When shopping in person in big retail stores such as Wal-Mart it’s easier to combine the two budgets. What I like to do is use the app for pick-up. That way I can add all of my “groceries” to the cart and get my total, then add all my household items. I take the total minus my groceries, and I get what I then spent on household items. Another way the app helps me stick to a budget is I meal plan every week. I go through the fridge and cabinets, so I only order the items I absolutely need. If I happen to exceed my grocery budget after adding all the needed items, I review my meal plan. I then substitute one of the higher-priced dinners with something more budget-friendly. Or change one of the meals to something I know we’ll have leftovers, like chili or stew; then, I don’t need to plan for as many meals.
