Hasan Fareed, a 24-year-old college graduate, never took a personal finance class. He pays his bills on time, has managed to save a little in an investment account, and with the help of an inheritance managed to buy a condominium. Hasan worries about his financial situation. Given the following information:

1. prepare a personal cash flow statement 

2. personal balance sheet 

3. calculate the current ratio, liquidity ratio, debt-to-assets ratio associated with Hasan’s personal financial statements. Interpret these ratios for Hasan. 

In addition to the list of monthly expenses, assets, and liabilities below, Hasan offers this information:

• All utility bills for the month are unpaid, and therefore appear as a current liability (phone, cable, electricity, natural gas, water/sewer).

• Auto and mortgage payments have been paid for the month; note that he lists “mortgage outstanding” and “auto loan outstanding” to indicate the outstanding amount remaining to pay off each loan.

• “Other expenses, monthly” represents cash spent without a record to verify where.

• Hasan charges everything on his credit cards and pays the balances off monthly. Credit card bills represent his average monthly balance.

• Semi-annual auto insurance premium payment is due this month.

List of monthly expenses, assets, and liabilities:

Visa bill	$1355	Water and sewer bill	$ 50
Stocks	5500	Savings account	3100
MasterCard bill	645	Chequing account	1825
Monthly paycheque, net	4700	Auto insurance, semi-annual	450
Mortgage payment, monthly	1030	Residence	265 000
Phone bill	85	Food, monthly	425
Cable bill	42	Auto	9000
Investment account (bank)	1800	Furnishings	5500
RRSP	4500	Mortgage outstanding	202 000
Car payment, monthly	435	Auto loan outstanding	4225
Electricity bill	60	Other personal property	1800
Natural gas bill	70	Other expenses, monthly	350