In this chapter, students will be able to: Understand the relationship between financial plans and statements, prepare a personal balance sheet, generate a personal income and expense statement, develop a good record-keeping system and use ratios to evaluate personal financial statements, construct a cash budget and use it to monitor and control spending, apply time value of money concepts to put a monetary value on financial goals. | PFIN 4 USING FINANCIAL STATEMENTS AND BUDGETS 2 Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. GITMAN/ JOEHNK/ BILLINGSLEY Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 1 Understand the relationship between financial plans and statements 2 Prepare a personal balance sheet 3 Generate a personal income and expense statement 4 Develop a good record-keeping system and use ratios to evaluate personal financial statements LEARNING OUTCOMES PFIN4 | CH2 Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5 Construct a cash budget and use it to monitor and control spending 6 Apply time value of money concepts to put a monetary value on . | PFIN 4 USING FINANCIAL STATEMENTS AND BUDGETS 2 Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. GITMAN/ JOEHNK/ BILLINGSLEY Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 1 Understand the relationship between financial plans and statements 2 Prepare a personal balance sheet 3 Generate a personal income and expense statement 4 Develop a good record-keeping system and use ratios to evaluate personal financial statements LEARNING OUTCOMES PFIN4 | CH2 Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5 Construct a cash budget and use it to monitor and control spending 6 Apply time value of money concepts to put a monetary value on financial goals LEARNING OUTCOMES (continued) PFIN4 | CH2 Financial Statements Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Balance sheets and income and expense statements Serve as planning tools that are essential to develop and monitor personal financial plans Budget: Detailed financial report that looks forward based on expected income and expenses PFIN4 | CH2 Exhibit Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Interlocking Network of Financial Plans and Statements PFIN4 | CH2 Example of an Exhibit slide. Balance Sheet Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Describes a person’s financial position at a .
