Balance sheet preparation

Adam and Arin Adams have collected their personal asset and liability information and asked you to put together a balance sheet as of December 31,2015. The following information is received from the Adams family.

Cash                                $300            Retirement funds, IRA        $2,000

Checking                       3,000             2014 Sebring                       15,000

Savings                          1,200             2010 Jeep                               8,000

IBM stock                      2,000             Money market funds           1,200

Auto loan                      8,000             Jewelry and artwork             3,000

Mortgage                  100,000            Net worth                              76,500

Medical bills payable      250            Household furnishings         4,200

Utility bills payable          150           Credit card balance               2,000

Real estate                150,000           Personal loan                          3,000

a. Create a personal balance sheet as of December 31, 2015. It should be similar to a corporate balance to a corporate balance sheet.

b. What must the total assets of the Adams family be equal to by December 31, 2015?

c. What was their net working capital (NWC) for the year? (Hint: NWC is the difference between total liquid assets and total current liabilities.)