# Balance Sheet Assignment

Isabella bought her first flat for £90,000 using a repayment mortgage of £63,000 in 2017 (Table 1). Her parents paid for the deposit on the flat. She is living on her own and bought a two-bedroom flat. She also decided to train to be a plumber and took out a personal loan from an auntie to pay for the training. She is now working as a plumber. She has a net monthly income of £1,750 and she spends on average £1,800 a month.

In 2019, Isabella’s financial situation has changed in a number of ways. In the area where she lives, property prices have fallen by 6%. Her current account balance has fallen to zero, she now has a £100 overdraft and her credit card debt has risen fivefold. Her savings in her instant access savings accounts have dropped by £600 and she now has £35 cash. The value of her repayment mortgage is now £58,000. Her mortgage repayments are £350 per month. She still owes her aunt £5000.

Isabella is considering making changes to address her financial situation. One option that she is considering is to let her spare room to gain extra income, subject to approval from her mortgage provider. Another option is for her to try and sell her flat and move back into her parents’ house.

Table 1  Isabella’s balance sheet

2017 2019
Assets 91,620
Liquid assets 1620
Cash 70
Current account 700
Instant access savings account(s) 850
Other liquid assets 0
Other assets 90,000
Home 90,000
Liabilities 68,300
Short-term liabilities 300
Overdraft 0
Credit card 300
Other short-term liabilities 0
Other liabilities 68,000
Personal loans 5000
Mortgage 63,000
Ratios
Net worth / wealth 23,320
Current asset ratio 5.40
Leverage ratio 74.55%

1.1  Using the information provided in Table 1 and the Balance sheet analyser financial tool, complete Isabella’s balance sheet for 2019. (4 marks)

1.2  Explain why, despite the property price falling by 6%, the mortgage value has fallen by 8%. (3 marks)

1.3  Using the information in Table 1, compare Isabella’s financial situation between 2017 and 2019. Comment on her proposed strategies for dealing with her financial situation. (4 marks)

1.4  Briefly explain two other possible actions that Isabella could take. (4 marks)

(Total marks available for Question 1: 15 marks) Get Finance homework help today

Calculate the price
Pages (550 words)
\$0.00
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with Australia Assessments
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
Testimonials
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
Customer 462795, April 3rd, 2022
Military
good job
Customer 456821, April 4th, 2022
It was really well written!
Customer 453975, February 28th, 2020
Education
Great job
Customer 463647, January 10th, 2023
Military
Good work.
Customer 456821, June 20th, 2022
Military
excellent job
Customer 456821, June 12th, 2022
Computer science
Excellent report.
Customer 462881, April 21st, 2022
Nursing
Thank you so much for the great paper!
Customer 454007, May 31st, 2020
English 101
Excellent deliverables. I love the immersive thought.
Customer 462537, April 21st, 2022
Education
nice
Customer 463813, March 10th, 2023
Accounting
Thank you so much for the help, with your help that provided me with more time to learn the materials and do other assignments. I wish you existed back in 2005.
Customer 453041, June 3rd, 2020
Education
so professional
Customer 463461, October 10th, 2022
11,595
Customer reviews in total
96%
Current satisfaction rate
3 pages
Average paper length
37%
Customers referred by a friend