Example using "Normalization" on an Individual's "Income Statement" and "Balance Sheet"

Jane Doe's Normalized Personal "Income Statement"

Note: This is similar (NOT identical) to what you will do when you normalize your company's income statement and balance sheet

Year 2001 Information

20% raise, slight increases in expenses
Monthly
Average
Annual Normalized
Income:
Base Salary
Bonuses/Consulting
Total Income

Year 2000 Information

Monthly
Average

Annual Normalized

% Increase
1999 to 2000
Annual

4800
1000
5800

57600
12000
69600

83%
17%
100%

4000
1000
5000

48000
12000
60000

80%
20%
100%

20%
0%
16%

Expenses/Taxes:
Taxes, etc.
Mortgage Payment
Car Payment
Credit Card/Other Pay
Utilities
Gas for Car
Savings
Food, Misc.
Total Expenses

1740
1000
500
200
500
78.48
870
800
5688.48

20880
12000
6000
2400
6000
941.76
10440
9600
68261.76

30%
17%
9%
3%
9%
1%
15%
14%
98%

1500
1000
400
200
500
65.4
500
800
4965.4

18000
12000
4800
2400
6000
784.8
6000
9600
59584.8

30%
20%
8%
4%
10%
1%
10%
16%
99%

16%
0%
25%
0%
0%
20%
74%
0%
15%

Budget "Profit/Slack"

111.52

1338.24

2%

34.6

415.2

1%

222%

Jane Doe's Normalized Personal "Balance Sheet"

Assets
Cash
Securities
Retirement Plans/401k
Food/Personal
Total Current Assets

5000
60000
115000
6000
186000

1%
10%
19%
1%
31%

5000
50000
100000
5000
160000

1%
9%
19%
1%
30%

0%
20%
15%
20%
16%

Fixed Assets
Car
Other Insurable Assets
Household Property
House
Total Fixed Assets
Total Assets

40000
50000
100000
220000
410000
596000

7%
8%
17%
37%
69%
100%

30000
45000
100000
200000
375000
535000

6%
8%
19%
37%
70%
100%

33%
11%
0%
10%
9%
11%

Liabilities & Equity:

Liabilities:
Credit Card/Other debt
Student Loan
Car Loan
Home Mortgage Balance
Total Liabilities

8000
7000
35000
140000
190000

1%
1%
6%
23%
32%

5000
8000
20000
150000
183000

1%
1%
4%
28%
34%

60%
-13%
75%
-7%
4%

Equity:
Total Liabilities + Equity

406000
596000

68%
100%

352000
535000

66%
100%

15%
11%

Example using "Normalization" on an Individual's "Income Statement" and "Balance Sheet"

9 to 2000

1.09
1.308

1.2