Kim and Walter come to see you as they are having problems making ends meet each month. They are starting to miss payments because their expenses exceed their income each month. You have prepared their net worth and cash flow statements.

Net Worth Statement
Kim and Walter
Year Ending 2023
Assets			Liabilities
Chequing Account	$2,500		Car Loan	15000
CSB	$2,500		Credit Card	24000
RRSP	$55,000		Student Loan	18000
Car	$35,000		Mortgage	271,377
House	550,000			328,377.07
	$645,000
Net Worth	$316,623

Cash Flow Statement
Kim and Walter
Year Ending 2023
Inflows			Outflows
Gross Income	96,300		Insurance	$ 3,600
Income taxes/Deductions	26127		Vacation	$ 5,000
Net Income	70,173		Water/Elect.	$ 1,500
			Food	$ 6,000
			Car Loan Payments	$ 6,000
			RRSP Contr	$ 2,400
			Heat	$ 1,800
			Property Taxes	$ 3,600
			Ent	$ 4,000
			Transport	$ 2,800
			Mortgage	$ 24,925
			Credit Card Pay	$ 7,200
			Student Loan	$ 3,600
				$ 72,425
Deficit or Surplus	$ (2,252)

Prepare their financial ratios (emergency fund, savings and debt ratio) and comment on each ratio.