Rene St. Clair is a 28-year old occupational therapist living in the Annex district of Toronto. She

Renée St. Clair is a 28-year old occupational therapist living in the Annex district of Toronto. She recently graduated from the University of Toronto and now works as an independent contractor assessing the legitimacy of claims made by victims of car accidents. Like many students, Renée accumulated a large student debt during her years at university and plans to pay it off within the next five years.

Perform a ratio analysis of Renée's financial statements. What does your analysis reveal?

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Cash Flow Statement For the Year Just Ended Income Professional billings Less: Professional expenses and taxes Professional income net of expenses and taxes Dividends (after taxes) $58,205 (23,890) $34,315 130 $34,445 Total Income Fixed Expenses Rent Student loan payments 9,600 5,800 $15,400 Total Fixed Expenses Variable Expenses Utilities, personal, food, clothing and dental Moving expenses Credit card interest Recreation/entertainment Vacations $12,785 225 1,010 1,890 6,200 $22,110 $37,510 3,065) Total Variable Expenses Total ExpensesS Surplus/(Deficit) Personal Balance Sheet As of Today Assets Liquid Assets Personal Possessions $1,540 $10,280 $ 3,025 $14,845 Investment Assets BCE shares Total Assets Liabilities Current Liabilities Credit card balances $7,855 Long-Term Liabilities Student loan Total Liabilities 20,580 $28,435 Net worth ($13,590)