Efram and Sofia, both aged 24, are newlyweds. Their after-tax salaries are $55 000 and $49 000, respectively. They have been renting a flat since they started work but have decided to buy a house. Their decision has been made easier because Eframs parents said that when they retire at age 65 in one years time they would withdraw $40 000 from their combined superannuation funds and give the money to Efram and Sofia to help them to buy a house. When they approached the bank for a loan they had to provide details of their income, expenses, assets and liabilities to the lending officer. The items provided for their personal balance sheet were:

Assets
Bank account	$45 000
Furniture/personal effects	$8 000
Managed investment fund	$20 000
Cars	$16 000
Superannuation Efram	$26 000
Superannuation Sofia	$21 000
Liabilities
Credit cards	$5 500
Car loans	$3 000

They also advise the lending officer that their monthly commitments are:

rent $1280

car loans $290.

They would prefer not to cash in their managed investment fund at present as the value has fallen by 8% over the last 2 months. They have instructed the fund manager to reinvest the distributions rather than receive them in cash. Their intention is to leave the investment to accumulate to meet the education expenses of the children in the future. They anticipate paying off their credit card debt in full next month and they would also have paid off the car loans in the next 12 months. They also advise the lending officer that their current rate of household expenses (not including the rent and repayments) is about $2400 per month.

Prepare a net worth statement and ratio analysis for their current situation.