Question: Differentiate between ownership via joint tenancy

> Tyler Winkle’s employer in Pittsburgh makes a matching contribution of $2,000 a year to his 401(k) retirement account at work. If the dollar amount of the employer’s contribution increases 4 percent annually, how much will the employer contribute to the

> Using the Rule of 72, calculate how quickly $1,000 will double to $2,000 at interest rates of 2 percent, 4 percent, 6 percent, 8 percent, and 10 percent.

> Using the present and future value tables in Appendix A, the appropriate calculations on the Garman/Forgue companion website, or a financial calculator, calculate the following: (a) The amount a person would need to deposit today to be able to withdraw $

> Megan Berry, a freshman horticulture major at the University of Minnesota, has some financial questions for the next three years of school and beyond. Answers to these questions can be obtained by using Appendix A or the Garman/Forgue companion website.

> Julia has recently undergone a severe career crisis. After nearly ten years as a professional engineer, her position was phased out by her company due to a loss of government contracts, and she has been offered a position in the marketing department. The

> Jacob Marchese of Vancouver, Washington, is the credit manager for a regional chain of department stores. He has been asked to join a panel of community members and make a ten-minute speech to graduating high school seniors on the topic “Using Credit Wis

> Julia has been thinking about the purchase of a boat. As a teenager, she was an avid water skier at her parents’ summer home. Now that she has moved away, she wants to renew her hobby at a lake nearby. Julia recently received a raise of $200 per month an

> Victor and Maria have always enjoyed a close relationship with Maria’s niece Teresa, who graduated from college with a pharmacy degree. Teresa recently asked Maria for some assistance with her finances now that her education debts are coming due. She owe

> Harry and Belinda have a substantial annual joint income—more than $125,000, in fact. Nevertheless, they expect to experience some cash-flow deficits during the months of November and December of the upcoming year (see Tables 3-6 and 3-

> Throughout this book, we will present a continuing narrative about Victor and Maria Hernandez. Following is a brief description of the lives of this couple. Victor and Maria, both in their late 30s, have two children: Jacob, age 13, and Nicholas, age 15.

> Asset Management Kwaku Addo, a licensed physical therapist from Topeka, Kansas, earns $4,200 per month take-home pay and has the funds directly deposited in his checking account. He spends only about $3,500 per month, and the excess funds have been build

> Julia’s six-figure salary has allowed her to build up a considerable cash reserve of over $20,000. She initially had basic checking and savings accounts. She also has a credit card with her bank that she uses to make most of her purchases, thereby earnin

> Fast The Hernandez family is experiencing some financial pressures, even though the couple has a combined income of $85,000. Also, their eldest son, Joseph, will start college in only three years. Maria is contemplating going to work full time to add abo

> Review Figure 4-1 on page 117 and comment on the logic of how different segments of Victoria Bassett’s income is taxed. Figure 4-1: Figure 4-1 How Your Income Is Really Taxed (Example: Victoria Bassett with a $60,000 gross income,

> Carson Wentz, of Philadelphia, determined the following tax information: salary, $144,000; interest earned, $2,000; qualified retirement plan contribution, $6,000; personal exemption, $4,050; itemized deductions, $10,000. Filing single, calculate Carson’

> Jared Goff, of Los Angeles, determined the following tax information: gross salary, $160,000; interest earned, $2,000; IRA contribution, $5,000; personal exemption, $4,050; and itemized deductions, $8,000. Calculate Jared’s taxable income and tax liabili

> Find the tax liabilities based on the taxable income of the following people: (a) married couple, $92,225; (b) married couple, $74,170; (c) single person, $27, 880; (d) single person, $56,060. (Hint: Use Table 4-3.)

> Describe two professional certification programs for financial planners.

> What are the four different ways financial planners may be compensated?

> In January, Harry and Belinda Johnson had $10,660 in monetary assets (see page 109): $1,100 in cash on hand; $1,200 in a statement savings account at First Credit Union earning 1.0 percent interest; $4,000 in a statement savings account at the Far West S

> How does a professional financial planner differ from a local lawyer or insurance person in your community?

> Identify three ways you might more effectively communicate about money matters.

> Explain why it is difficult for many people in relationships to talk about money matters.

> Explain what a cash-flow calendar accomplishes. Name three techniques to control spending.

> How might one go about revising budget estimates to create a balanced budget?

> What are budget estimates? Offer some suggestions on how to go about making budget estimates for various types of expenses.

> Explain why setting financial goals is an important step in budgeting.

> Name different ways to handle budget variances.

> List two ways you can maximize the benefits from a tax-sheltered retirement program.

> Create a math example of why many employees participate in a tax-sheltered employee benefit plan, such as an HSA or 401(k) plan

> Kate Beckett and her two children, Austin and Alexandra, moved into the home of her new husband, Richard Castle, in New York City. Kate is a novelist, and her husband is a police detective. The family income consists of the following: $60,000 from Kate&a

> Summarize the benefits of participating in a high-deductible health care plan at work.

> What is a flexible spending account and what do pretax dollars have to do with it?

> Distinguish between Chapter 7 and Chapter 13 bankruptcy, and explain who might be forced to use Chapter 13 rather than Chapter 7.

> What services are provided by a credit counseling agency, and how might a debt management plan work to provide relief for someone who is having debt problems?

> List the major provisions of the Fair Debt Collection Practices Act.

> Identify four signs of over indebtedness.

> Summarize the rules that apply if you lose your ATM or debit card and it is used without your authorization.

> List the steps you should take if you find an error in your monthly statement regarding an electronic transaction.

> Distinguish among credit cards, debit cards, and stored-value cards.

> Summarize what you know about Bitcoin.

> Julia does well financially because she earns a good salary as an engineer, is somewhat frugal, and is making the maximum contribution to her employer-sponsored retirement plan. After reading about ways to decrease her income tax liability, she has some

> Use Table 1-1 to calculate the future value of (a) $2,000 at 5 percent for four years, (b) $4,500 at 9 percent for eight years, and (c) $10,000 at 6 percent for ten years. Table 1-1: Table 1-1 Future Value of $1 After a Given Number of Periods Pe

> Explain the difference between simple interest and compound interest, and describe why that difference is critical.

> What are the two common questions about money?

> Summarize how to fix errors in your credit report, and explain why some people add a consumer statement to their report.

> Name three steps to help establish a good credit history.

> What is a credit history, and what role do credit bureaus play in the development of it?

> Distinguish among the credit terms: prescreened, invitation-to-apply, and preapproved.

> Explain why correctly owning assets is important to the personal finances of people, especially couples.

> Identify three strategies to avoid overpayment of income taxes, and summarize the essence of each.

> Several years have gone by since Harry and Belinda graduated from college and started their working careers. They both earn good salaries. They believe that they are paying too much in federal income taxes. The Johnsons’ total income la

> Summarize the differences between a traditional individual retirement account (IRA) and a Roth IRA.

> Explain how to reduce income taxes via your employer, and name three employer sponsored plans to do so.

> Distinguish between two major types of tax-sheltered investment returns

> Name three financial records that might be best kept in a safe-deposit box or in an envelope at a safe place like at work.

> List some advantages of keeping good financial records.

> Give three suggestions on how to succeed in an interview.

> Give examples of how to identify specific job opportunities.

> Offer suggestions on correctly assembling a résumé and what style formats are available.

> Give two career advancement tips.

> Explain how to compare salary and living costs in different cities.

> A Couple Creates an Educational Savings Plan Stanley Marsh and Wendy Testaburger of South Park, Colorado, have two young children. They both work and earn a substantial income, over $100,000 annually. Their monthly budget is illustrated in Table 3-5 on p

> Describe and give an example of how your marginal income tax rate can affect financial decision making.

> Explain and give an example of how marginal utility and marginal cost makes some financial decisions easier.

> Define opportunity cost and give an example of how opportunity costs might affect your financial decision making.

> What is the best thought on the list of keeping student loan debt under control?

> Summarize the effects of increasing debt payments from 10 percent to 15 percent on a budget. (Hint: See the Run the Numbers worksheet.) Worksheet: RUN THE NUMBERS Make Spending Reductions to Pay for Increasing Credit Usage 15 percent perhaps for a v

> What are the borrower’s feelings when he/she has a limit of debt of 11 to 14 percent of disposable personal income compared to a debt limit of 15 to 18 percent? (Hint: See Table 6-1.) Table 6-1: Table 6-1 Debt-Payment Limits as a P

> Distinguish among the continuous debt method, debt-to-income, debt payments-to-disposable income, and debt-to-income methods for setting your debt limit

> Explain the benefits and drawbacks of certificates of deposit.

> Distinguish between a money market account and a money market mutual fund account.

> Summarize what happens when you write a check.

> Julia Price Thinks About Financial Statements, Tools, and Budgets Julia graduated over six years ago in aeronautical engineering and changed job once. Her income is more than sufficient for her needs. Julia contributes the maximum into her employer’s ret

> Explain why opening a checking account and a money market account are appropriate actions for most people, and tell how each will be used.

> List five examples of tax credits.

> What advice on filing a Form 1040X can you offer someone who did not file a federal income tax return last year or in any one of the past three years?

> Distinguish between a standard deduction and a personal exemption.

> List three examples of adjustments to income.

> Give five examples of income that is excluded from IRS reporting.

> How are long-term and short-term capital gains treated differently for income tax purposes?

> Give five examples of income that must be included in income reported to the Internal Revenue Service.

> Distinguish between fixed and variable expenses, and give two examples of each

> How should assets and liabilities be valued for the balance sheet, and why?

> Victor and Maria Hernandez Victor and Maria, both in their late 30s, have two children: John, age 13, and Joseph, age 15. Victor has had a long sales career with a retail appliance store. Maria works part-time as a medical records assistant. The Hernande

> Throughout this book, we will present a continuing narrative about Harry and Belinda Johnson. Following is a brief description of the lives of this couple. Harry is 28 years old and graduated five years ago with a bachelor’s degree in i

> What is taxable income for an individual? How does it differ from taxable income for a corporation?

> The company president is reviewing the performance and budget of the marketing department with the vice president of marketing. Should that be a one-on-one meeting or should the CFO be present? Why? If you feel the CFO should be there, what should be his

> Diversified companies are made up of divisions, each of which is a separate business. Large companies have divisions spread over the entire country. In such companies most treasury functions are centralized, whereas most accounting functions are carried

> If the Johnson Company of Problem 2 is subject to a marginal tax rate of 34%, what is the cash flow associated with the sale of the used truck?

> The Johnson Company bought a truck costing $24,000 two and a half years ago. The truck's estimated life was four years at the time of purchase. It was accounted for using straight line depreciation with zero salvage value. The truck was sold yesterday fo

> Canaday Ltd. has the following receivables balances ($M) Gross Accounts Receivable………………………………………. $175 Bad Debt Reserve………………………………………………………. (3) Net Accounts Receivable…………………………………………...$172 Two years ago a customer was approved for an unusually lar

> You've been hired by the nation of Utopia to computerize its approach to calculating taxes. Utopia's progressive tax system contains only two brackets, which are applicable to all households. These are as follows:

> Rachel and Harry are planning to get married. Both have successful careers and expect to earn the following this year. whether getting married will cost or save them money and how much. Assume that getting married during a year subjects the entire yea

> The Snyder Company had the following income and expense items: Sales…………$180,870,000 Cost…………...$110,450,000 Expenses…...$65

> Inky Inc. reported the following financial information in 2015. Operating income (EBIT)………………$650,000 Interest………………………………………...$430,000 Dividends from Printers Inc. not included in operating income (Inky owns 3% of Printers) …$20,000 Dividends paid t

> Compare and contrast the terms “stockholder” and “stakeholder.”

> Microchip Inc had the following profits and losses in the years indicated 2013………........$5,000,000 2014……………...$350,000 2015…….

> Ed Fletcher is planning to start a business that requires an investment of $500,000. He has that much money, but can also borrow virtually the whole amount from a rich relative. (This is very unusual.) Ed feels that after the business is started, it w

> Calculate the corporate tax on earnings before tax (EBT) of the following amounts a. $37,000 b. $57,000 c. $88,500 d. $110,000 e. $5,375,000 f. $14,000,000 g. $17,350,000 h. $23,500,000