Assets: 14,800

Liabilities: $10,000

Net worth: $4,800

1) Calculate Debt Ratio:

2). Calculate Current Ratio:

3). Calculate Liquidity Ratio based on what we know of his expenses:

4). How many months of expenses can he cover?

5). What is one way you can improve this ratio?

Larry has about $3,000 in a regular savings account and $800 in his checking account. Larry has a car payment of $300/mo and owes $10,000 on the car. Larry pays $1200/mo rent. Larry's Grandma gave him a $2000 mutual fund for his 25th birthday and he contributes $100/mo to it. It is now worth about $11,000, as shown above.