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Julia and Adrian Simmons are recent graduates and newlyweds. Adrian is an IT analyst at Delliotes earning $110,000 gross per year and Julia is a marketing manager at Afterpay making $140,000 gross. Both employers pay 10% super on top of their salaries.

The Simmons live in the Melbourne CBD as that is where their offices are, however, they are currently in lockdown due to Covid. They rent their 2-bedroom apartment in Carlton for $1300 per week and love their lifestyle. Julia and Adrian want to work towards buying their first home and starting a family, but they are unsure where to start to ensure their financial security and have come to see you for advice.

Their Financial information is shown below and in AUD:

Cash at Bank	$ 17,000
Term Deposit	35,000
Share Portfolio	10,000
Contents Student Loans Julia	50,000 50,000
Student Loans Adrain	90,000
Superannuation Fund Julia Superannuation Fund Adrain Credit Cards Balance Owing General Household Expenses	25,000 28,000 13,000 60,000 per annum
Entertainment	500 per week
Rent	1300 per week
Private Health Insurance	300 per month
Credit Card Payment	300 per month
Income: Julias gross income Adrians Gross Income	110,000 140,000
Julia Tax & Medicare Adrian Tax & Medicare Julia Student Loan Payment Adrian Student Loan Payment	30,397 38,877 8,800 14,000

You are required to prepare the following:

1. Prepare a personal monthly cash flow statement for Mr. and Mrs. Simmons
2. Prepare their personal balance sheet including their net worth
3. Calculate the debt service, savings, liquidity and solvency ratios.
4. Prepare a short report (Three paragraphs at most) which summaries their current financial position. What advice might you give to Adrian and Julia on their current situation and then what they can do to work towards their goals in the next 5 years.

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