Assets and liabilities, Operation Management

The Dominos pay their household bills and everyday expenses from their joint chequing account, which has a current balance of $4,200. They both opened Tax Free Savings Accounts and deposited the maximum in both 2009 and 2010. They have, at the end of 2010,  contributed $20,000 to their TFSAs some of which is liquid, some of which they consider to be "Non-Registered Investments" as described below.

• One TFSA was set up in 2009 to hold emergency funds. It now has a balance of $3,045 ($3,000 contribution, $45 interest income for two years). Since they want to keep these funds l iquid, they expect to continue to earn only 2.0% while inflation is 1.25%.

• They also have a savings account with a balance of $4,500 which they estimate they will spend now, in early 2011, on financial planning advice. They have been saving about $600 a year in order to be able to get this advice. Beginning in 2012, they plan to save $500 a year  in a TFSA so that, every four or five years in the future, they can return to their financial planner to assess their position in detail. 

Hint: They will spend the $4,500 this year for their first comprehensive financial plan. They have saved for this and will use their financial planning savings to pay for it. Do not show as coming from their cashflows - their financial planning savings will be used up and at the end of 2012 and in future years, they will save $500 for future advice.

• Beginning in 2012, after the car lease is paid, they want to save $300 a month, also in a TFSA, so they can pay cash for their next car. This account will earn a modest 2% a year. As emergency funds, Leonard has $9,000 in Canada Savings Bonds (CSBs) which earn 3.0% before tax. Rose has $7,000 invested in a 1-year Guaranteed Investment Certificate (GIC) which earns 4.0% and matures at the end of February, 2011. She plans to reinvest the funds in GICs when they mature and expects to make the same return. These two accounts will not be moved to TFSAs and, as a result, the annual income is taxable.

Posted Date: 3/1/2013 7:04:01 AM | Location : United States







Related Discussions:- Assets and liabilities, Assignment Help, Ask Question on Assets and liabilities, Get Answer, Expert's Help, Assets and liabilities Discussions

Write discussion on Assets and liabilities
Your posts are moderated
Related Questions
Essentially relativism reject the notion that there is are no absolutes that govern our behaviour. How then do we determine how we behave? How reasonable and plausible is this posi

What effect does your organisation's facility layout have on the following (where appropriate): inter-process movement; health & safety; congestion; resource utilisation; work-in-p

The local lottery sets up a game wherein a player has a chance of collecting $800. The player must choose a 3-digit number and if it matches the lottery number, the player recei

1. An element of work has been measured 6 times, with the following results (units of 0.01 minutes): 18, 20, 19, 21, 19, 22. What should be the full-study sample size?  Answer:

Google's strategy 2010: identify the issues management needs to address. Analyze and evaluate the issues identified based on the information provided in the case. Recommend a set o

Analyze the different approaches to innovation discussed in this chapter to determine which approach you think would be the greatest value to the greatest number of organizations.

What is the supply chain terminology? Supply chain terminology: • Upstream refers to processes which arise prior to an organisations supply stage. • Downstream refers to

Question: (a) "Teams definitely are forms of work groups, but not all work groups are teams". Work groups function on three levels: Dependent level, Independent level and Inter

how can make a plan for appropriate capacity of a cinema by replacing amount of standard seats with luxury seats?

Rules Related to the  use  the Human  Body: R elated to the  use  the Human  Body : a.   The two  hands should  beings  as well as  complete their  motions  at the same