Week Memo

Memo to Client In this memo one and only(a) impart Include a summary of the facts, Including the names, ages, educational background, and Income status for Mr.. And Mrs.. keep out and their ii dependents. Loose CPA will also discuss two of the Closes goals and concerns. This memo will also summarize the findings and key elements of the personal budget, rest sheet, and the statement of cash rate of flow.Loose CPA will also make recommendations and back down for improving the financial situation for the Closes. Summary of Facts Clients- great deal and Tina Close are married with two children, Tyler (16) and Nikkei (14). Ken Is 42 courses old disable ex-factory worker with a high school education. Tina Is a 37 year old Event Planner with an Associates Degree in customer service. Although Ken is disabled he does receive disability benefits of $14,500 one-yearly and Titans annual income is $32,500.Tyler is a Junior at BBS and works part-time at Cullers with an annual income of $3,100. Nikkei is a freshman at BBS and is not employed. The familys goals are to rationalise credit card debt and to save for a vacation. The vernally biggest concerns are that their credit will suffer if they do not pay off the debt and that Tyler and Nikkei will both(prenominal) need vehicles soon. Key Items and Findings The balance sheet compiled for the Closes shows tot assets to be price $188,250 and total liabilities at $115,320. 24.Ken and -rattans net worth $72,929. 76. The statement of cash flow compiled includes monthly income from Kens Social Security Disability and Titans net income from event grooming for a total monthly income of $3,294. 16. The total cash outflows of $2629. 69 burn down be divided Into fixed expenses of $1475. 49 and variable expenses of $1 154. 20 for the month of February. The monthly inflows minus monthly outflows gives the Closes a cash bare(a) of $664. 47 each month to divide up for emergencies, savings, and a family vacation.The monthly gadget show no stochastic variable for inflows but does show a small variance for outflows. The savings variance was ($4. 53), the fixed expense variance was zero, and the variable expense variance was $6. 23. Thus giving a total outflow variance of $1. 70. Loose CPA recommends that Mr.. And Mrs.. Close try to find the amount spent on credit cards in the incoming and for the balance due(p) on the current credit cards to be paid in an amount higher than the monthly minimum due in order to pay the cards off faster and contract interest charges.