Prepare a statement of changes in net worth

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Reference no: EM131317760

For Mike Szabo, the changes in net worth for the year ended December 31, 2012, follow:

Realized increases in net worth:
Salary	$60,000
Dividend income	2,500
Interest income	2,000
Gain on sale of marketable securities	500
Realized decreases in net worth:
Income taxes	20,000
Interest expense	6,000
Personal expenditures	29,000
Unrealized increases in net worth:
Stock options	3,000
Land	7,000
Residence	5,000
Unrealized decreases in net worth:
Boat	3,000
Jewelry	1,000
Furnishings	4,000
Estimated income taxes on the differences between the estimated current values of assetsand the estimated current amounts of liabilities and their tax bases	15,000
	15,000
Net worth at the beginning of year	150,000

Required
a. Prepare a statement of changes in net worth for the year ended December 31, 2012.

b. Comment on the statement of changes in net worth.

Reference no: EM131317760

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