DROP DOWN OPTIONS

SOLVENCY RATION = (INCOME AFTER TAXES, TOTAL ASSETS, TOTAL NET WORTH) / (MONTHLY GROSS INCOME, TOTAL ASSETS, TOTAL NET WORTH)

LIQUIDITY RATIO = (CASH SURPLUS, TOTAL LIQUID ASSETS, TOTAL ASSETS) / TOTAL CURRENT DEBTS, TOTAL LIABILITIES)

SAVINGS RATE = (MONTHLY GROSS INCOME, INCOME AFTER TAXES, CASH SURPLUS) / (MONTHLY GROSS INCOME, INCOME AFTER TAXES, CASH SURPLUS)

DEBT SERVICE RATIO = (TOTAL LIABILITIES, TOTAL NET WORTH, TOTAL MONTHLY LOAN PAYMENTS) / TOTAL MONTHLY LOAN PAYMENTS, MONTHLY GROSS INCOME, TOTAL CURRENT DEBTS)

5. Financial statement ratios Financial Statement Ratios Financial statement ratios play an important role in understanding and interpreting financial data. The solvency, liquidity, savings, and debt service ratios are important tools that will provide you with information, helping you chart and improve your personal financial planning Complete the equations for each of the following financial statement ratios Solvency Ratio Total Net Worth Total Assets Liquidity Ratio - Total Liquid Assets/Total Current Debts Savings Ratio / Monthly Gross Income Cash Surplus Debt Service Ratio Brock Newman has prepared his annual financial statements in order to analyze the data. The data provided are items from Brock's balance sheet and income and expense statement. Use the data provided to calculate Brock's financial statement ratios. Enter your answers as percentages rounded to two decimal places. For example, .15006 would be entered as "15.01%." Brock's Financial Data Total liquid assets $441 Total assets $8,825 Total current debts $2,206 Total net worth $3,089 Total cash surplus $152 Income after taxes $1,246 Total monthly loan payments $274 Monthly gross (before-tax) income $1,520 Brock Newman has prepared his annual financial statements in order to analyze the data. The data provided are items from Brock's balance sheet and income and expense statement. Use the data provided to calculate Brock's financial statement ratios. Enter your answers as percentages rounded to two decimal places. For example, .15006 would be entered as "15.01%." Brock's Financial Data Total liquid assets $441 Total assets $8,825 Total current debts $2,206 Total net worth $3,089 Total cash surplus $152 Income after taxes $1,246 Total monthly loan payments $274 Monthly gross (before-tax) income $1,520 Brock's solvency ratio: Brock's liquidity ratio: 16.09 % Brock's savings ratio Brock's debt service ratio