A Recent Graduate's Debt Status. Chelsea Menken recently graduated with a degree in food science and now works for a major consumer foods company earning $20K per year with about $36,000 in take-home pay. She rents an apartment for $1040 per month. While in school, she accumulated about $38,000 in student loan debt on which she pays $385 per month. During her last fall semester in school, she had an internship in a city about 100 miles from her campus. She used her credit card for her extra expenses and has a current debt on the account of $8000. She has been making the minimum payment on the account of about $320. She has assets of $14,000.

(a) Calculate Chelsea's debt payment-to-disposable income and debt-service-to-income ratios.

(b) Calculate Chelsea's debt-to-equity ratio.

(c) Comment on Chelsea's debt situation and her use of student loans and credit cards while in college.