Fath Brooks, a 28-year-old college graduate, never took a personal finance class. She pays her bils on time, has managed to save a little in a mutual fund, and (with the help of an inheritance) managed a down payment on a condominium But Fath womes about her tnancial situation. Given the following information .prepare her personal balance sheet (Worksheet 4) and income statement (Worksheet 5). Using information from these statements, caloulate the curnent ratio. savings ratio, monthly living expenses covered ratio, debt raio, and longterm debt coverage ratio Interpret these francial statements and ratios for Faith. Based on your assessment, what advice would you give Fath? in addtion to ther following list, Fath offers these explanations All short-term and long-term labiltes are urpaid "Other expenses, monthly represents cash spent without a recond She charges all incidentals on her credit cards and pays the balances off monthly The balances shown here T represent her average monthly balances (Select from the drop-down menu and round to the nearest dollar) Faith Brooks' Inceme Statement tyearly) Falth's Take-Home Pay (Select from the drop-down menu and round to the nearest deliw Faith Brooks' Income Statement tyearly) Fath's Living Expenses Choose from any ist or enter any number in the input fields and then continue to the next question elp i Data Table finan ation long- sin sse Balance Account $352 Visa bill rd. $5,500 Stocks ances $248 MasterCard bil ances. $2,399 Monthly paycheck, net Annual medical expenses $267 $527 Mortgage payment, monthly Temple Mutual Fund $2,102 $4,500 401(k) retirement account Car payment, monthly $268 $273 Total monthly utilities Hame P Savings account Clothing expense, monthly Checking account $2,302 $43 $826 r.) is and then Print Done Data Table Balance Account $352 Visa bill $5,500 Stocks $248 MasterCard bill Monthly paycheck, net Annual medical expenses $2,399 $267 Mortgage payment, monthly Temple Mutual Fund $527 $2,102 401(k) retirement account $4,500 Car payment, monthly $268 Total monthly utilities Savings account Clothing expense, monthly Checking account $273 $2,302 $43 $826 nen Print Done MacBook Pro Total Living Expenditures (Select from the drop-down menu and round to the nearest dollar.) Faith Brooks' Income Statement (yearly) Total Available for Savings and Investments After-Tax Income Available for Living. Expenditures.or. Take-Hame Pay ..Tatal Living Expenditures... Jncome Available.for Savings and.Investment. (Select from the drop-down menu and round to the nearest dollar.) Faith Brooks' Personal Balance Sheet Faith's Assets (What She Owns) -- in tha inRut fialde and than continue to the nevt aeetion. |I Faith's Total Assets Select from the drop-down menu and round to the nearest dollar.) Faith Brooks' Personal Balance Sheet Faith's Liabilities or Debt (What She Owes) Current Debt Total Current Debt... $ 873 (Select from the drop-down menu and round to the nearest dollar.) Faith Brooks' Personal Balance Sheet Faith's Liabilities or Debt (What She Owes) Long-Term Debt Choose from any list or enter any number in the input fields and then continue to the next questic Long-Term Debt $ 53,922 Total Long-Term Debt. Faith's Total Debt. (Select from the drop-down menu and round to the nearest dollar.) Faith Brooks Personal Balance Sheet Faith's Net Worth Total Assets Less: Tatal Debt Equals:Faith's Net Worth.. Faith's current ratio is.(Round to two decimal places.) With Faith's available monetary assets, she could meet her current liabilities approximately times, which Choose from any list or enter any number in the input fields and then continue to the next question. The (Round to teo decimal placesy Fath's cumenl ralio is we Fah's avalabie monetary asses she could meet her curent abes approimately tmes, which is good (Round to two decimal places) Financal advisors suggest a ratie abeve with a trend for the rao to be inoreasing (Round to the nearest integer) Fat's savings ratio%(Round to two decimal places) Falh's months living expense coverage ratio is (Round to two decimal places) An emergency fund eque toto montha of expenses is traditonaly recommended Availablity of credt to offset commting such a large sum to low eaming iquit acceurts may reduce the emergency nd Fath couid meet expenses for at over one month-a precanous fnancial suaion that can only be remedied through increased savings Round to the nearest ineger) Fa's debt ratio is%Round to the nearest intege) The debt ratio suggests that of Fat's assets are firanced through borowing As is typical, her home nepresents the buk of her labtes as wall as her assets Over time. th ratio is ely to decline, however an increasing trend would bei cause for concem (Round to the nearest integer) Fath's ong-term debt coverage ratio is (Round to two decimal places) The long derm coverage ratio of tmes from her curent income (Round to bwo- exceeds the recommended minimum of 2.5, which implies that Fath could meet her motgage and ato payments, her only long tem debt obligations Choose from any ist or enter any number in the input Selds and then continue to the next question cause coR o aaa (Round to bwo decimal places) Faith's long-tem debt coverage ratio is times from her current income. (Round exceeds the recommended minimum of 2.5, which imples that Fath could meet her mortgage and auto payments, her only long-lerm debt obligations,t The long term coverage ratio of decimal places) cents, to service long-term debt obligations. (Round to the nearest integer) The reverse of the ratio offers another uselul insight on Faith's financial situation. Of every take-home dolar, Fath has commited %or Athough her long-em debt ratio is not high enough to raise a caution ag, before taking on additional debt she should seriously consider the impact of having less than %of her take-home pay to meet all other expenses (Rou nearest integer) On frst inspection, Fath seems to be Snancially sound. However, based on a review of the ratios and the information provided, Fath should consider (Select all the choioes that apply) A Keeping her labilities low and not adding more debt without first checking her ratios B. Identlying francial goals and developing a financial plan OC. Decreasing her spending to increase savings or increasing her income. The later may not be an option and the impact of the tax "bite" should not be ignored. DD. Improving her recordkeeping She has omited budget cateegories that might typically occur (eg, recreation) and has a lot of "unaccounted for spending on her credt cards and with cash DE Inoeasing her savings for an emergency fund and financial goals (eg, specific goals, retrement, eto). Choose from any ist or enter any number in the input fields and then oontinue to the next question. Fath Brooks, a 28-year-old college graduate, never took a personal finance class. She pays her bils on time, has managed to save a little in a mutual fund, and (with the help of an inheritance) managed a down payment on a condominium But Fath womes about her tnancial situation. Given the following information .prepare her personal balance sheet (Worksheet 4) and income statement (Worksheet 5). Using information from these statements, caloulate the curnent ratio. savings ratio, monthly living expenses covered ratio, debt raio, and longterm debt coverage ratio Interpret these francial statements and ratios for Faith. Based on your assessment, what advice would you give Fath? in addtion to ther following list, Fath offers these explanations All short-term and long-term labiltes are urpaid "Other expenses, monthly represents cash spent without a recond She charges all incidentals on her credit cards and pays the balances off monthly The balances shown here T represent her average monthly balances (Select from the drop-down menu and round to the nearest dollar) Faith Brooks' Inceme Statement tyearly) Falth's Take-Home Pay (Select from the drop-down menu and round to the nearest deliw Faith Brooks' Income Statement tyearly) Fath's Living Expenses Choose from any ist or enter any number in the input fields and then continue to the next question elp i Data Table finan ation long- sin sse Balance Account $352 Visa bill rd. $5,500 Stocks ances $248 MasterCard bil ances. $2,399 Monthly paycheck, net Annual medical expenses $267 $527 Mortgage payment, monthly Temple Mutual Fund $2,102 $4,500 401(k) retirement account Car payment, monthly $268 $273 Total monthly utilities Hame P Savings account Clothing expense, monthly Checking account $2,302 $43 $826 r.) is and then Print Done Data Table Balance Account $352 Visa bill $5,500 Stocks $248 MasterCard bill Monthly paycheck, net Annual medical expenses $2,399 $267 Mortgage payment, monthly Temple Mutual Fund $527 $2,102 401(k) retirement account $4,500 Car payment, monthly $268 Total monthly utilities Savings account Clothing expense, monthly Checking account $273 $2,302 $43 $826 nen Print Done MacBook Pro Total Living Expenditures (Select from the drop-down menu and round to the nearest dollar.) Faith Brooks' Income Statement (yearly) Total Available for Savings and Investments After-Tax Income Available for Living. Expenditures.or. Take-Hame Pay ..Tatal Living Expenditures... Jncome Available.for Savings and.Investment. (Select from the drop-down menu and round to the nearest dollar.) Faith Brooks' Personal Balance Sheet Faith's Assets (What She Owns) -- in tha inRut fialde and than continue to the nevt aeetion. |I Faith's Total Assets Select from the drop-down menu and round to the nearest dollar.) Faith Brooks' Personal Balance Sheet Faith's Liabilities or Debt (What She Owes) Current Debt Total Current Debt... $ 873 (Select from the drop-down menu and round to the nearest dollar.) Faith Brooks' Personal Balance Sheet Faith's Liabilities or Debt (What She Owes) Long-Term Debt Choose from any list or enter any number in the input fields and then continue to the next questic Long-Term Debt $ 53,922 Total Long-Term Debt. Faith's Total Debt. (Select from the drop-down menu and round to the nearest dollar.) Faith Brooks Personal Balance Sheet Faith's Net Worth Total Assets Less: Tatal Debt Equals:Faith's Net Worth.. Faith's current ratio is.(Round to two decimal places.) With Faith's available monetary assets, she could meet her current liabilities approximately times, which Choose from any list or enter any number in the input fields and then continue to the next question. The (Round to teo decimal placesy Fath's cumenl ralio is we Fah's avalabie monetary asses she could meet her curent abes approimately tmes, which is good (Round to two decimal places) Financal advisors suggest a ratie abeve with a trend for the rao to be inoreasing (Round to the nearest integer) Fat's savings ratio%(Round to two decimal places) Falh's months living expense coverage ratio is (Round to two decimal places) An emergency fund eque toto montha of expenses is traditonaly recommended Availablity of credt to offset commting such a large sum to low eaming iquit acceurts may reduce the emergency nd Fath couid meet expenses for at over one month-a precanous fnancial suaion that can only be remedied through increased savings Round to the nearest ineger) Fa's debt ratio is%Round to the nearest intege) The debt ratio suggests that of Fat's assets are firanced through borowing As is typical, her home nepresents the buk of her labtes as wall as her assets Over time. th ratio is ely to decline, however an increasing trend would bei cause for concem (Round to the nearest integer) Fath's ong-term debt coverage ratio is (Round to two decimal places) The long derm coverage ratio of tmes from her curent income (Round to bwo- exceeds the recommended minimum of 2.5, which implies that Fath could meet her motgage and ato payments, her only long tem debt obligations Choose from any ist or enter any number in the input Selds and then continue to the next question cause coR o aaa (Round to bwo decimal places) Faith's long-tem debt coverage ratio is times from her current income. (Round exceeds the recommended minimum of 2.5, which imples that Fath could meet her mortgage and auto payments, her only long-lerm debt obligations,t The long term coverage ratio of decimal places) cents, to service long-term debt obligations. (Round to the nearest integer) The reverse of the ratio offers another uselul insight on Faith's financial situation. Of every take-home dolar, Fath has commited %or Athough her long-em debt ratio is not high enough to raise a caution ag, before taking on additional debt she should seriously consider the impact of having less than %of her take-home pay to meet all other expenses (Rou nearest integer) On frst inspection, Fath seems to be Snancially sound. However, based on a review of the ratios and the information provided, Fath should consider (Select all the choioes that apply) A Keeping her labilities low and not adding more debt without first checking her ratios B. Identlying francial goals and developing a financial plan OC. Decreasing her spending to increase savings or increasing her income. The later may not be an option and the impact of the tax "bite" should not be ignored. DD. Improving her recordkeeping She has omited budget cateegories that might typically occur (eg, recreation) and has a lot of "unaccounted for spending on her credt cards and with cash DE Inoeasing her savings for an emergency fund and financial goals (eg, specific goals, retrement, eto). Choose from any ist or enter any number in the input fields and then oontinue to the next