Donna and Dan live in Dewsbury. Donna is a police officer and Dan works part-time in a warehouse. When they bought a three-bedroom house in September 2018 the mortgage broker talked them through repayment and interest-only mortgages. They decided to use their savings as a deposit and chose a repayment mortgage, which by September 2020 was standing at 110,000. The market value of their house had increased by 2% over this time period on the original purchasing price of 144,000. Together, in September 2020 the couple earn a net monthly income of 3,000 and their expenditure has averaged 3,300 a month over the last two years. In September 2020 a loan to conduct initial refurbishment (putting up new fences) is down from 2,000 to 1,000, their current account balance has dropped to zero and they have an overdraft on their current account of 1,800. Meanwhile their savings account holds just 100. They also owe 2,500 on a credit card. The rest of their balance sheet has not changed since September 2018 They are reviewing their finances as they consider further home improvements. Table 1 shows their balance sheet and financial ratios in September 2018 Table 1 Donna and Dan's household balance sheet - September 2018 Table 1 Donna and Dan's household balance sheet - September 2018 September 2018 Assets (Total) 146,080 Liquid assets 2,080 Cash 80 Current account 1,500 Instant access savings account(s) 500 Other liquid assets 0 Other assets 144.000 Home 144,000 Liabilities (Total) 118,500 Short-term liabilities 1,500 Overdraft 0 Credit card 1,500 Other short-term liabilities 0 Other liabilities 117,000 Personal loans 2,000 Mortgage 115,000 Other liabilities 117,000 Personal loans 2,000 Mortgage 115,000 Ratios Net worth / wealth 27,580 Current asset ratio 1.39 Leverage ratio 81.12 1.1 Using the information provided in Table 1, complete the couple's balance sheet for September 2020. 1.2 Explain the factors Donna and Dan might have considered in choosing a repayment mortgage over an nterest-only mortgage in 2018. 1.3 Using the financial ratios and other relevant information, compare the couple's financial situation in September 2018 and September 2020, and explain whether you lean towards their home improvement idea. 1.4 Briefly explain two other possible actions they could ake to improve their financial situation. Donna and Dan live in Dewsbury. Donna is a police officer and Dan works part-time in a warehouse. When they bought a three-bedroom house in September 2018 the mortgage broker talked them through repayment and interest-only mortgages. They decided to use their savings as a deposit and chose a repayment mortgage, which by September 2020 was standing at 110,000. The market value of their house had increased by 2% over this time period on the original purchasing price of 144,000. Together, in September 2020 the couple earn a net monthly income of 3,000 and their expenditure has averaged 3,300 a month over the last two years. In September 2020 a loan to conduct initial refurbishment (putting up new fences) is down from 2,000 to 1,000, their current account balance has dropped to zero and they have an overdraft on their current account of 1,800. Meanwhile their savings account holds just 100. They also owe 2,500 on a credit card. The rest of their balance sheet has not changed since September 2018 They are reviewing their finances as they consider further home improvements. Table 1 shows their balance sheet and financial ratios in September 2018 Table 1 Donna and Dan's household balance sheet - September 2018 Table 1 Donna and Dan's household balance sheet - September 2018 September 2018 Assets (Total) 146,080 Liquid assets 2,080 Cash 80 Current account 1,500 Instant access savings account(s) 500 Other liquid assets 0 Other assets 144.000 Home 144,000 Liabilities (Total) 118,500 Short-term liabilities 1,500 Overdraft 0 Credit card 1,500 Other short-term liabilities 0 Other liabilities 117,000 Personal loans 2,000 Mortgage 115,000 Other liabilities 117,000 Personal loans 2,000 Mortgage 115,000 Ratios Net worth / wealth 27,580 Current asset ratio 1.39 Leverage ratio 81.12 1.1 Using the information provided in Table 1, complete the couple's balance sheet for September 2020. 1.2 Explain the factors Donna and Dan might have considered in choosing a repayment mortgage over an nterest-only mortgage in 2018. 1.3 Using the financial ratios and other relevant information, compare the couple's financial situation in September 2018 and September 2020, and explain whether you lean towards their home improvement idea. 1.4 Briefly explain two other possible actions they could ake to improve their financial situation