Deric and Trave are a married couple. They own a house worth RM400,000 and collectively they have a yearly income of RM120,000, current and savings account balances of RM200,000, a Honda City worth RM70,000 and a Toyota Vios worth RM60,000. The house has a RM300,000 mortgage. Both of them have outstanding MARA education loans of RM20,000 collectively, two outstanding car loans of RM30,000 each and a home interior design loan totaling RM80,000. Additionally, they have bank credit card balances outstanding totaling RM15,000, department store credit card balances outstanding of RM500 and utilities outstanding of RM700. (a) Using the information above, prepare a personal statement of net worth for Deric and Trave. (15 marks)

(b) Calculate and comment on the following ratios for Deric and Trave: (i) Solvency ratio; (5 marks) (ii) Liquidity ratio. (5 marks) [Total: 25 marks]