Self-employed Example

Assume Mr. Smith was injured in January 2012 and can no longer work again. How would you calculate his lost earnings? Use the spreadsheet attached as a starting point for your analysis. What (if any) accounts should be adjusted? What is a reasonable assumptions of Mr. Smiths future lost earnings?

The completed homework should include the attached spreadsheet with your analysis to arrive at a reasonable estimate of lost earnings and notes regarding the basis for your assumptions.