Adriano Solis is a logistics manager for a small manufacturing firm in southern Ontario, earning $4,700 per month after all deductions. His partner, Marcela Porporato, is a police officer, earning 5,500 per month after all deductions. They have good health care benefits from their employers. Marcela has a good pension plan. Their financial goals are to pay off their house mortgage in 20 years and in the coming year take two holidays instead of one. Last years holiday cost $3,000. They would like to spend $6,000 on holidays this year. They would like to start a family by having two children in a couple of years. They have collected the following additional financial data and you should assume it is complete, all expenses given are monthly and their asset values are all current values today. Calculate the following ratios: debt; current; liquidity; debt-payments and savings. For the savings ratio, use take-home pay.

Notes: The value of a pension plan is an illiquid asset. You cannot take money out of a pension plan until you retire. The car loan will be repaid in less than one year. The credit card balances owing include $5,000 that is overdue and charging interest at 24% p.a.

$600,000 5,500 4,700 1,800 Value of house Marcela's take home pay Adriano's take home pay Cash in bank accounts Credit card debt: VISA card #1 VISA card #2 Mastercard Interest on overdue credit card debt Phone and internet expense Utilities Value of two cars Balance owing on car loan Car expenses (gas, insurance, maintenance, licenses) Car loan payments Balance in Tax-free savings accounts (TFSA) Value of Marcela's pension plan Clothing expense Food and household Mortgage payments Balance owing on mortga Insurance on house Entertainment Other expenses 7,000 5,000 3,000 100 100 1,400 20,000 2,000 1,200 300 25,000x 45,000 300 1,200 2,700 400,000 200 600 500