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use the attached document to complete the first part of this assignment.In Part I, you will analyze your own financial situation with one addition: you have inherited $1 million dollars from a long lost relative (tax free)! There is one caveat with the money, you can’t spend it on whatever you want. Using the Personal Balance Sheet, follow the bulleted items below to work through your financial obligations and opportunities that the $1 million brings.You MUST first take care of current responsibilities (liabilities), things like a mortgage, credit card debt, current or past bills, car loans, etc. Include a detailed discussion on your current obligations to be taken care of first with the $1 million. Consider the total dollar amount for current obligations and begin deducting your finances from the $1 million (by entering your financial decisions in the Balance Balance Sheet).Next, consider the future; look at how you can make the money work for you. Consider what you would put into things like investments, retirement, property, etc. Be sure to reference the risk and return websites you searched in the Learning Activities; this may help you to decide whether to weigh the risk, or to settle on a less risky investment.Next, look at any physical assets you may wish to invest. A new home, or possible rental properties, maybe gold or silver, or another type of commodity. Again, weigh the risk and return to make sure the investment is worth your money.When you get to the end, if you have a balance remaining, you will need to decide what to spend it on within the items you already considered (i.e. if you purchase a house, you may wish to set aside the excess into a money market account, CD, or other interest earning account to help pay for yearly taxes or insurance on the house). So this could be as easy as setting up a savings account or something along those lines.In Part II, you should write a narrative financial analysis of your decisions above, referencing the source materials used to support the decisions you made (i.e., textbook, websites, financial publications, and other resources available through the library). Your financial analysis paper should be at least 2 pages in length.
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MT4441 Business Review Lab
Assignment 03 Personal Balance Sheet
Personal Balance Sheet
BALANCE
Total Cash & Cash Equivalents
Cash Gift
$ 1,000,000
$ 1,000,000
Total Cash & BALANCE
Liabilities and Equity
Short Term Credit
Credit Card 1
Credit Card 2
Credit Card 3
Loans (from friends or family)
Home Line of Credit (home
improvements)
Other current liabilities
Total Short-term Credit
Loans & Mortgages
Mortgage, Primary Residence
Mortgage, Rental Property
Vehicle 1
Vehicle 2
Recreational Vehicle
Student Loans
Business Loans
401(k) Loan
Other
Total Long-term Debt
Total Liabilities & BALANCE
$
$
$
–
$
–
$
–
Assets & Investments
Retirement Accounts
401(k)
403(b)
IRA – Roth
IRA – Traditional
Mutual Funds
Money Market Account
Other Investments
$
–
$ 1,000,000
Total Retirement Accounts
Property
Primary Residence
Rental Property
Vehicle 1
Recreational Vehicle
Commodity
Other
Other
$
–
$
Total Property
$
–
Total Assets & BALANCE
$
–
Balance Remaining =
$ 1,000,000
$ 1,000,000
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