As their daughter Erica starts high school, Murray and Beverly decide that it is time to take stock of their family finances to see how they will be able to pay for Ericas education. They have provided you with the following financial information:

1. Label Asset categories (Liquid, Invested, & Household)

2. Label Current & Long-Term Liabilities

3. Calculate Murray and Beverlys net cash flow.

4. Calculate Murray and Beverlys net worth.

5. Evaluate Murray and Beverlys financial status with regard to the following financial ratios: a. Liquidity Ratio b. Debt Ratio c. Savings Ratio

6. Based on their present situation, do you think Murray and Beverly are prepared to send Erica to college in four years? Why or why not?

7. Are there any red flags you notice or further questions youd like to know about this client?

8. Do you have any suggestions for improving their personal finances?

\begin{tabular}{|l|r|} \hline Bank Accounts & $13,000.00 \\ \hline Automobiles & $35,000.00 \\ \hline Other personal assets & $20,000.00 \\ \hline Murray's retirement account & $250,000.00 \\ \hline Bev's IRA & $119,000.00 \\ \hline Market Value of home & $210,000.00 \\ \hline Current bills & $1,200.00 \\ \hline Credit card balances & $10,000.00 \\ \hline Car loan & $8,000.00 \\ \hline Mortgage & $150,000.00 \\ \hline \end{tabular} \begin{tabular}{|l|r|} \hline Monthly Income and Expenses: & \\ \hline Murray \& Bev's gross income & $8,400.00 \\ \hline Interest income & $500.00 \\ \hline Income/Payroll taxes & $2,000.00 \\ \hline Groceries & $600.00 \\ \hline Mortgage payment & $1,150.00 \\ \hline Health/medical costs & $175.00 \\ \hline Life insurance premium & $85.00 \\ \hline Utilities & $280.00 \\ \hline Car loan payment & $440.00 \\ \hline Home \& Car maintenance & $225.00 \\ \hline Auto insurance & $180.00 \\ \hline Credit card payments & $215.00 \\ \hline Clothing & $125.00 \\ \hline Entertainment & $235.00 \\ \hline Vacations & $300.00 \\ \hline Retirement fund contributions & $1,000.00 \\ \hline Church donations & $500.00 \\ \hline Gifts & $100.00 \\ \hline Other expenses/Unknown & $350.00 \\ \hline Cell Phone Bill & $150.00 \\ \hline Restaurants & $250.00 \\ \hline \end{tabular} \begin{tabular}{|l|r|} \hline Bank Accounts & $13,000.00 \\ \hline Automobiles & $35,000.00 \\ \hline Other personal assets & $20,000.00 \\ \hline Murray's retirement account & $250,000.00 \\ \hline Bev's IRA & $119,000.00 \\ \hline Market Value of home & $210,000.00 \\ \hline Current bills & $1,200.00 \\ \hline Credit card balances & $10,000.00 \\ \hline Car loan & $8,000.00 \\ \hline Mortgage & $150,000.00 \\ \hline \end{tabular} \begin{tabular}{|l|r|} \hline Monthly Income and Expenses: & \\ \hline Murray \& Bev's gross income & $8,400.00 \\ \hline Interest income & $500.00 \\ \hline Income/Payroll taxes & $2,000.00 \\ \hline Groceries & $600.00 \\ \hline Mortgage payment & $1,150.00 \\ \hline Health/medical costs & $175.00 \\ \hline Life insurance premium & $85.00 \\ \hline Utilities & $280.00 \\ \hline Car loan payment & $440.00 \\ \hline Home \& Car maintenance & $225.00 \\ \hline Auto insurance & $180.00 \\ \hline Credit card payments & $215.00 \\ \hline Clothing & $125.00 \\ \hline Entertainment & $235.00 \\ \hline Vacations & $300.00 \\ \hline Retirement fund contributions & $1,000.00 \\ \hline Church donations & $500.00 \\ \hline Gifts & $100.00 \\ \hline Other expenses/Unknown & $350.00 \\ \hline Cell Phone Bill & $150.00 \\ \hline Restaurants & $250.00 \\ \hline \end{tabular}