Here is my Balance Sheet:

Assets:

Cash: $1,000

Checking account: $500

Savings account: $1,000

Investments: $5,000

Car: $10,000

Home: $200,000

Liabilities:

Credit card debt: $5,000

Student loan debt: $20,000

Mortgage: $150,000

Owner's equity: $25,000

Income Statement

Revenue:

Salary: $5,000

Rental income: $1,000

Expenses:

Housing: $2,000

Utilities: $500

Food: $500

Transportation: $500

Other expenses: $500

Net income: $1,000

Current debt ratio:

Current debt ratio = Total liabilities / Total assets = $35,000/$30,000 = 1.167

The current debt ratio of 1.167 is high. This means that I have more liabilities than assets, which could make it difficult to repay a loan.

Liquidity ratio:

Liquidity ratio = Current assets / Current liabilities = $2,000/$5,000 = 0.4

A liquidity ratio of 0.4 is low. This means that I do not have enough liquid assets to cover your current liabilities.

Debt service ratio:

Debt service ratio = Monthly debt payments / Monthly income = $3,000/$5,000 = 0.6

A debt service ratio of 0.6 is high. This means that I am spending a large portion of my income on debt payments. Based on my financial statements, I would not qualify for a loan based only on my current financial situation. My current debt ratio, liquidity ratio, and debt service ratio are all high, which indicates that I may not be able to repay a loan.

What actions could I take to improve my financial statements (please use realistic actions within your power to implement).

In my conclusion, I want to create three positively correlated actions that I could take to strengthen my financial position over a three-year timeline.