Daisy (40) your new client is concerned about her finances. She is looking for your input on her financial position. Below is the financial data she provides for 2020. Incomes and expenses are annual, assets, and liabilities are balances on Dec 31st, 2020

Gross Income $90000 Mortgage Debt $235000 Income taxes $31000 Vacation $4500 Mortgage Payments $18000 Heat $3000 Loan payments $10000 Transportation $4000 Water & Electricity $2000 Property Taxes $6000 Food expenses $5000 Entertainment $3500 Chequing account $4000 Charitable donations $1000 RRSP $27000 House $780000 Stock portfolio (Equities) $35000 Car $29000 Car Loan $18000 Line of Credit (Outstanding) $27000 GIC (5-year term) $20000 Insurance premiums $6000

a) Prepare a complete Net worth Statement ( 2 marks)

b) Prepare a complete Cash flow statement (2 marks)

c) Assess fully Daisys cash flow statement (from b above) (2 marks)

d) Calculate and EVALUATE her Emergency Fund Ratio (2 marks)

e) Calculate and EVALUATE her savings ratio (2 marks)

f) Calculate and EXPLAIN her Debt Ratio (1 mark)

g) Calculate and EVALUATE her Total Debt Service Ratio (2 marks)

h) Identify and justify which expense (s) you recommend she decreases. Ensure you EXPLAIN FULLY your rationale for the expense (s) included (2 marks)