Question
Financial statement ratios play an important role in understanding and interpreting financial data. The solvency, liquidity, savings, and debt service ratios are important tools
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 = Liquidity Ratio: Savings Ratio = Debt Service Ratio = Justin Garrity has prepared his annual financial statements in order to analyze the data. The data provided are items from Justin's balance sheet and income and expense statement. Use the data provided to calculate Justin's financial statement ratios. Enter your answers as percentages rounded to two decimal places. For example, .15006 would be entered as "15.01%." Justin's Financial Data Total liquid assets $ 469 Total assets $9,375 Total current debts Total net worth $2,344 $3,281 Total cash surplus Income after taxes $175 $1,437 Total monthly loan payments $316 Monthly gross (before-tax) income $1,753 Justin's solvency ratio: % Justin's liquidity ratio: % Justin's savings ratio: Justin's debt service ratio: % %
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