Prepare a statement of net worth for Senzeni family on the 31st May 2018.

1. Prepare a statement of net worth for Senzeni family on the 31st May 2018. Step 1: Calculate total assets. Assets include items of value owned by the family. Money in bank &= R50\,000 \\ House &= R250\,000 \\ Furniture &= R35\,000 \\ Television &= R6\,000 \\ Laptop &= R7\,300 \\ Cellular phones &= R6\,000 \\ Son's X Box &= R6\,450 \\ Car &= R75\,000 \\ Total Assets &= R50\,000 + R250\,000 + R35\,000 + R6\,000 + R7\,300 + R6\,000 + R6\,450 + R75\,000 \\ &= R435\,750 Step 2: Calculate total liabilities. Liabilities include debts owed by the family. Loan from bank &= R35\,000 \\ House bond &= R125\,000 \\ Edgars debt &= R16\,000 \\ Total Liabilities &= R35\,000 + R125\,000 + R16\,000 \\ &= R176\,000 Step 3: Calculate net worth. Net worth is calculated as Total Assets minus Total Liabilities. Net Worth &= Total Assets - Total Liabilities \\ &= R435\,750 - R176\,000 \\ &= R259\,750 The net worth of the Senzeni family on 31st May 2018 is R259\,750. 2. Mention two sources of personal income for Mr Senzeni. • Salary: R15 000 per month • Interest from bank: R250 per month 3. Calculate all Mr Senzeni's monthly expenses/payments. Step 1: List all monthly expenses. Groceries &= R3\,500 \\ Edgars payment &= R4\,500 \\ Bond payment &= R5\,500 \\ Loan payment &= R800 \\ Fuel for car &= R700 \\ Pocket money for children &= R500 × 2 = R1\,000 \\ Electricity &= R700 \\ Total Monthly Expenses &= R3\,500 + R4\,500 + R5\,500 + R800 + R700 + R1\,000 + R700 \\ &= R16\,700 Mr Senzeni's total monthly expenses are R16\,700. 4. Determine the amount money left after paying all the expenses. Step 1: Calculate total monthly income. Salary &= R15\,000 \\ Bank interest &= R250 \\ Total Monthly Income &= R15\,000 + R250 \\ &= R15\,250 Step 2: Calculate money left after expenses. Money Left &= Total Monthly Income - Total Monthly Expenses \\ &= R15\,250 - R16\,700 \\ &= -R1\,450 The amount of money left after paying all expenses is -R1\,450 (a deficit of R1 450). 5. Identify any expense that you think should be decreased. The Edgars payment of R4 500 per month is a significant expense that could potentially be decreased. This payment is likely for consumer goods purchased on credit, and reducing it would help alleviate the monthly deficit. What's next? 📸