Expense Statement.

$2.$ Using the information provided by your friend in the above table, evaluate personal financial progress utilizing key personal financial ratios by addressing the following:

a$.$ Debt Service Ratio:

I. Discuss the purpose of this ratio and indicate how it is utilized to evaluate personal financial progress.

it$.$ Calculate your friend's ratio, label your work, and provide an interpretation of their results

iii. If $35\%$ is considered a manageable level of debt, do you think that your friend will have any problems meeting their loan payments on time? Explain why or why not.

b$.$ Liquid ty Ratio:

L$.$ Discuss the purpose of this ratio and indicate how it is utilized to evaluate personal financial progress.

ii$.$ Calnalate your friend's ratio, label your work, and provide an interpretation of their results.

ii$.$ If creditors consider $2\mathrm{.}0($two years$)$ to be a minimum acceptable liquidity ratio before they will grant a loan, do you think that your friend will have any problems obtaining a loan? Explain why or why not.