CRPC Practice Exam 1 2023/2024 with 100% correct answers

Mary Goodwin's financial situation is as follows: Cash/cash equivalents$15,000S hort-term debts$8,000 Long-term debts$133,000 Tax expense$7,000 Auto note payments$4,000 Invested assets$60,000 Use assets$188,000 What is her net worth? - correct answer $122,000 Assets = $263,000; liabilities = $141,000, so net worth is $122,000. Taxes and auto note payments appear on the cash flow statement. For the year ending December 31, XXXX, Bill Greer has the following financial information: Salaries$70,000Auto payments$5,000Insurance$3,800Food$8,000Credit card balance$10,000Dividends$1,100Utilities$3,500Mortgage payments$14,000Taxes$13,000Clothing$9,000Interest income$2,100Checking account$4,000Vacations$8,400Donations$5,800 What is the cash flow surplus or (deficit) for Bill? - correct answer $2,700 Income = $70,000 + $1,100 + $2,100 = $73,200. Expenses = $5,000 + $3,800 + $8,000 + $3,500 + $14,000 + $13,000 + $9,000 + $8,400 + $5,800 = $70,500, so there is a surplus of $2,700. The checking account and credit card balances would be on the statement of financial position. Which of the following are correct statements about income replacement percentages? - correct answer II, III, and IV The inverse of Option I is true. Those with a lower preretirement income typically need a much higher income replacement percentage in retirement. If Tom and Jenny want to save a fixed amount annually to accumulate $2 million by their retirement date in 25 years (rather than an amount that grows with inflation each year), what level annual end-of-year savings amount will they need to deposit each year, assuming their savings earn 7% annually? - correct answer $31,621 Set calculator "End" and "1 P/Yr" Inputs: FV = 2000000, i = 7, N = 25, PV = 0, then Pmt = $31,621 Bill and Lisa Hahn have determined that they will need a monthly income of $6,000 during retirement. They exp