Bobby Wagner recently graduated with a degree in accounting and now works at an accounting firm. He makes $32,000 a year in take home pay, rents an apartment for $800 a month. His school debt is $20,000 with a monthly payment of $225 per month. He also has accrued credit card debt of $5,000. He has been making minimum payments on the credit card debt of $200. Bobby has assets of $10,000.

1. Calculate Bobbys debt payment-to-disposable income and debt-service-to-income ratios (you may have to google how to calculate this ratio).
2. Calculate Bobbys debt-to-equity ratio
3. What do you think of Bobbys situation in regards to debt? Give him some advice.