At the end of the month, Sara notices that she has the following balances in her ledger:

Account	Amount
Cash	$300
Checking Account	900
Monthly Car Payment	350
Credit Card Balance	800
Monthly Wage Income	2,000
Certificate of Deposit	3,000
Car	5,800
Other Illiquid Investment Assets	1,600
Monthly Clothing Expense	100
Monthly Food Expense	300
Monthly Interest Expense	30
Car Loan Balance	4,200
Monthly Rent	750
Monthly Interest and Dividend Income	120
Impulse and Miscellaneous Expenses	180
Savings Account	800

1. How rich is Sara? (The liabilities reflect values after current bills have already been paid. Therefore, donot include current expenses as debts.)

A.

$8,320

B.

$8,200

C.

$7,400

D.	None of the above

2. What is Sara's liquidity ratio?

A.

0.86

B.

4.67

C.

3.01

D.

1.17

3. Which of the following is the best indicator of Sara"s solvency?

A.

1.72

B.

about 50%

C.

about 35%

D.

2.48

4.

What was Sara's net gain last month?

A.

$460

B.

$580

C.

$410

D.

$320