Carol Nebring is a recent college graduate with a bachelors degree from a small, liberal arts university located in a major city in the Midwest. She is in the process of looking for work in her degree field, but in the meantime will continue working at the same full time job that paid her tuition and put her through school. She shares living expenses evenly with 2 roommates who have also just graduated and are also looking for work in their own degree field.Liabilities listed on the balance sheet are principal owed only. No interest is included in these figures. All interest expense is taken from the payments made to the creditor before the remainder of the payment is applied to the balance owed on the loan.Using the financial ratios we reviewed in class, and based on the data presented, identify any areas of Carols financial behavior that need to be addressed or remedied. Is there anything that you can see that she is doing wrong? If so, what should she do to correct the problems that you have identified? Be specific.

Financial Ratios Net Profit Margin (NPM) Return on Equity (ROE) Return on Assets (ROA) Total Asset Turnover (AT) Before Capitalization Profit after tax Total sales Profit after tax Total share capital & reserve Prof it after tax Total assets Sales Total assets Total debt Total assets Total debt Total share capital & reserve Profit before tax and interest Interest Current assets Current liabilities After Capitalization Profit after tax + change in i Total sales Profit after tax + change in Total share capital & reserve + ch Profit after tax + change in I Total assets + PVA Sales Total assets + PVA Total debt + PVOL Total assets + PVA Total debt + PVOL Total share capital & reserve + ch Profit before tax and interest Interest + i * PVOL Current assets Current liabilities + PV Debt to Total Assets (DAR) Debt to Equity (DER) Times Interest Earned (TIE) Current Ratio (CR) Source: Lckerath and de Bos (2009) 2013 23,250 90 23,340 2014 24,000 100 24,100 2015 25,000 110 25,110 2016 26,000 115 26,115 Incomes Wages Interest Totals Expenses Payroll Taxes Rent Food Car Pmts Other Variable Auto Expenses Credit Card Pmts Utilities Totals Savings 5,800 5,750 2,200 2,400 1,500 1,650 900 1,050 21,250 2,090 6000 6000 2400 2400 1600 1800 1200 1200 22,600 1,500 6250 6250 2500 2400 1800 1850 1500 1300 23,850 1,260 6500 6250 2700 2400 2150 1825 1800 1350 24,975 1,140 Checking Acct Emergency Savings Liquid Assets Chevrolet Pickup (93) Mazda Miata (87) Tangible Assets Stock Mutual Fund Money Market Fund Bond Fund Investment Assets Total Assets LT Debt Car Loan (Pickup) Visa #1 Visa #2 Dept Store Charge Total Liabilities Net Worth Total Liabilities & Net Worth 2013 900 1,900 2,800 7,200 4,300 11,500 250 850 850 1,950 16,250 2014 1,000 2,000 3,000 6,000 3,500 9,500 350 1,000 1,000 2,350 14,850 2015 1,200 2,100 3,300 4,800 2,800 7,600 575 1,030 1,225 2,830 13,730 2016 1,100 2,200 3,300 3,840 2,240 6,080 815 1,061 1,465 3,341 12,721 7,200 2,500 2,500 10,000 2,200 1,500 0 13,700 2,550 16,250 4,768 3,000 2,400 250 10,418 3,312 13,730 1,925 4,400 2,250 750 9,325 3,396 12,721 12,200 2,650 14,850 0.09 Bal 1 7200 54 2 7004 52.53 3 6806.53 51.04898 4 6607.579 49.55684 5 6407.136 48.05352 6 6205.189 46.53892 7 6001.728 45.01296 8 5796.741 43.47556 9 5590.217 41.92663 10 5382.143 40.36608 11 5172.509 38.79382 12 4961.303 37.20977 13 4748.513 35.61385 14 4559.127 34.19345 15 4368.32 32.7624 16 4176.083 31.32062 17 3982.403 29,86803 18 3787.271 28.40454 19 3590.676 26.93007 20 3392.606 25.44455 21 3193.051 23.94788 22 2991.998 22.43999 23 2789.438 20.92079 24 2585.359 19.39019 25 2379.749 17.84812 26 2197.598 16.48198 27 2014.08 15.1056 28 1829.185 13.71889 29 1642.904 12.32178 30 1455.226 10.91419 31 1266.14 9.49605 32 1075.636 8.06727 33 883.7033 6.627775 34 690.3311 5.177483 35 495.5086 3.716314 136 299.2249 2.244187 250 7004 250 6806.53 250 6607.579 250 6407.136 250 6205.189 250 6001.728 250 5796.741 250 5590.217 250 5382.143 250 5172.509 250 4961.303 250 4748.513 225 4559.127 225 4368.32 225 4176.083 225 3982.403 225 3787.271 225 3590.676 225 3392.606 225 3193.051 225 2991.998 225 2789.438 225 2585.359 225 2379.749 200 2197.598 200 2014.08 200 1829.185 200 1642.904 200 1455.226 200 1266.14 200 1075.636 200 883.7033 200 690.3311 200 495.5086 200 299.2249 200 101.4691 2013 1.90 2014 2.00 2015 2.10 2016 2.02 Replacement 1.19 1.22 1.32 1.36 Solvency Debt Service Rent Only Rent + Cons Debt Debt / Income Investment Asset Savings Rate 0.25 0.39 0.59 0.12 0.09 0.25 0.40 0.51 0.16 0.06 0.25 0.40 0.41 0.21 0.05 0.24 0.40 0.36 0.26 0.04