QUESTION 1

a)

Balance Sheet as at 31/12/2015 for Ahmad Albab

Liquid Asset Current Liabilities

Cash in hand 450 Credit card balance 3570
Saving Account 1300 Overdraft 2200
1750 5770

Lifestyle Asset Long Term

Liabilities
Accessories 60000 Home 120000
Household furniture 27600 Condominium 150000
Stereo Equipment 3600 Toyota 32000
Mv Clothing 5400 PTPTN Loan 13800
Balance
Mv Residence 600000 315800
Mv Toyota 45000
741600

Investment Asset Total Net Worth 641780

Mv Condominium 220000
220000

Total Asset 963350 963350

 Cash Flow Statement as at 31 December 2015 for Ahmad Albab

Cash Inflow

Rental Income 14400

Salary 63600
Total Inflow 78000

Cash Outflow

Education Loan (200x 12) 2400

Home Monthly Payment (1440x12) 17280
Condominium payment 10100
Monthly loan Toyota (630x12) 7560
Food (600x12) 7200
Fuel and maintenance(500x12) 6000
Zakat 480
Local Authority 720
Medical Insurance 1200
Utilities (380x12) 4560
Fixed Charitable 450
Leisure and entertainment(250x12) 3000
Handphone bills (150x12) 1800
Dining Out(350x12) 4200
Astro (115x12) 1380
Total Ouflow 68330
Saving 9670

b (i) Liquid asset to take home pay Liquid Asset 1750 x 100 = 2.75%
 Take home pay 63600

Liquid asset to take home pay ratio is below the request level of 25% a 3 month.This
show that Ahmad Albab has a serious liquidity problem.

(ii) Current ratio Liquid Asset 1750 = 0.3

Current Liabilities 5770

The current ratio is just slightly below 1 and may have problem to meet short term
requirement.

c) i)Increase saving
ii)Do more investment on ASB and Tabung Haji
iii)Reduce usage on credit card
iv)Avoid future spending on expensive item

d) i) It can improve our cost of living.

ii)So we can cut expenses so we are not over budget
iii)We can see and track our saving and financial performance.