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You are the financial advisor for Mary Killington. She has come to you seeking financial abvice based en her current financial situation. She has a few financial goals that she would like to achieve and is neoding some understanding and direction. As her financial advisor, it is your responsibility to give her proper financial advice and in order to do 50 , you will need to uaderstand her current net worth, budget, trx situation, and investment goals. Using the information below, please answer the questions. Be sure to answer each question in full. If you think that any information is missing. do not hesitate to contact me. 1. Complete a halance shect for Mary and answer the questions below. Be sure to separate the assets and liabilities into their property category in her bulance sheet. For example, separate current from long term liabilities. (15 marks) a. Balance Sheet b. What is Mary's net worth? c. Calculate Mary's Carrent Ratio. Esplain no Mary why her Current Ratio migha be a coocern. 2. Complete a monthly cash flow statement for Mary and answer the questions below, Be sure to separate the different foems of income and expenses into their property categories in her cash flow statement, For ecample, separate fixed and variable expenses. (15 marks) a. Cash Flow Staternent b. What is Mary's cash surplus or deficir? c. Calculate Mary's Debt Payments Ratio. Explain to Mary why her Debt Payments Ratio might be a concem. 3. Mary tells you the following three goals that she would like to achieve. Please restate each of the goals as SMART Goals. Be sare that the SMART Goals make sense for Mary's financial sitaation. (6 marks) a. "T would like so buy a bigger house in a few years" b. "I would like to pay off my car loan as soon as possible" c. "I would like to save for retirement" 4. Calculate Mary's Marginal Tax Rate, total taxes owing on taxable income, and Average Tax Rate and answer thefollowing questions. Assume she has no tax deductions for the year. (10 marks) a. Marginal Tax Rate b. Total Taxes Owing based on Taxable Income c. Average Tax Rate d. Explain to Mary how she could lower her tax penalty with an RSP contribution of $10,000 this year. Be sure to show your calculations. e. Explain to Mary the tax penalty of an RSP at the time of withdrawal. f. Explain to Mary the tax benefits for investing in a TFSA as well as hosv much contribution room she would have remaining if she invested $12,000 in a TFSA this year (assume she is 35 . years old and earned 5500 in her TFSA). 5. Mary tells you that you would like to invest some money. For the investment, she is deciding between $1,200 for the next twenty-five months or $150 per month for the next twenty months. Assuming the investment will earn 6% during that time, which option will make her more money. Be sure to show your calculations for cach option. ( 5 marks) 6. Mary tells you that she would like to have $1,500,000 saved in 30 years when she retires. Assuming she starts investing with a new retirement account with a $0 balanceand that she will earn an average of 8%, how much does she need to invest today to reach her goal? (2 marks) 7. Mary does not understand the difference between simple and compound interest. Using the balance in her savings account, calculate the simple interest and compound interest differences after 5 years if her savings account paid 3% interest. Assume interest compounds annually, (4 marks) 8. Mary is concemed about the increased cost of living. If inflation today is 7%, how long will it take for the cost of living to double? What financial advice can you give her to ensure that she is mot as impacted by the increased cost of living? ( 3 marks) You are the financial advisor for Mary Killington. She has come to you seeking financial abvice based en her current financial situation. She has a few financial goals that she would like to achieve and is neoding some understanding and direction. As her financial advisor, it is your responsibility to give her proper financial advice and in order to do 50 , you will need to uaderstand her current net worth, budget, trx situation, and investment goals. Using the information below, please answer the questions. Be sure to answer each question in full. If you think that any information is missing. do not hesitate to contact me. 1. Complete a halance shect for Mary and answer the questions below. Be sure to separate the assets and liabilities into their property category in her bulance sheet. For example, separate current from long term liabilities. (15 marks) a. Balance Sheet b. What is Mary's net worth? c. Calculate Mary's Carrent Ratio. Esplain no Mary why her Current Ratio migha be a coocern. 2. Complete a monthly cash flow statement for Mary and answer the questions below, Be sure to separate the different foems of income and expenses into their property categories in her cash flow statement, For ecample, separate fixed and variable expenses. (15 marks) a. Cash Flow Staternent b. What is Mary's cash surplus or deficir? c. Calculate Mary's Debt Payments Ratio. Explain to Mary why her Debt Payments Ratio might be a concem. 3. Mary tells you the following three goals that she would like to achieve. Please restate each of the goals as SMART Goals. Be sare that the SMART Goals make sense for Mary's financial sitaation. (6 marks) a. "T would like so buy a bigger house in a few years" b. "I would like to pay off my car loan as soon as possible" c. "I would like to save for retirement" 4. Calculate Mary's Marginal Tax Rate, total taxes owing on taxable income, and Average Tax Rate and answer thefollowing questions. Assume she has no tax deductions for the year. (10 marks) a. Marginal Tax Rate b. Total Taxes Owing based on Taxable Income c. Average Tax Rate d. Explain to Mary how she could lower her tax penalty with an RSP contribution of $10,000 this year. Be sure to show your calculations. e. Explain to Mary the tax penalty of an RSP at the time of withdrawal. f. Explain to Mary the tax benefits for investing in a TFSA as well as hosv much contribution room she would have remaining if she invested $12,000 in a TFSA this year (assume she is 35 . years old and earned 5500 in her TFSA). 5. Mary tells you that you would like to invest some money. For the investment, she is deciding between $1,200 for the next twenty-five months or $150 per month for the next twenty months. Assuming the investment will earn 6% during that time, which option will make her more money. Be sure to show your calculations for cach option. ( 5 marks) 6. Mary tells you that she would like to have $1,500,000 saved in 30 years when she retires. Assuming she starts investing with a new retirement account with a $0 balanceand that she will earn an average of 8%, how much does she need to invest today to reach her goal? (2 marks) 7. Mary does not understand the difference between simple and compound interest. Using the balance in her savings account, calculate the simple interest and compound interest differences after 5 years if her savings account paid 3% interest. Assume interest compounds annually, (4 marks) 8. Mary is concemed about the increased cost of living. If inflation today is 7%, how long will it take for the cost of living to double? What financial advice can you give her to ensure that she is mot as impacted by the increased cost of living? ( 3 marks)

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