Learn how to calculate your net worth and financial ratios using a balance sheet.

1. Using your textbook as a guide, create a personal balance sheet, using the information provided below. Be sure to calculate the net worth.

Age: 27 Goal: Retire at 62 Years to Retirement: 35 Savings Needed: $2,500,000

Monthly Salary (Gross): $3,790

Monthly Savings Contribution: $400

Monthly 401K Contribution: 8% of gross salary

2. Calculate Debt Ratio and interpret.

3. Calculate Current Ratio and interpret.

4. Calculate Liquidity Ratio and interpret.

5. Calculate Savings Ratio and interpret. 6. In your own words, how would you describe this persons financial health? (See page 51 for ratio formulas and interpretation guide)

Personal loan balance at bank $1,768 Savings account $7,349 Coin jar in the closet $284 Auto loan $13,641 Credit card balances $1,103 5-YR Certificate of deposit (CD) $4,470 Student loan $4,287 Unpaid loan from brother $800 Personal Expenses (each month) $1,953 Home mortgage balance $159,446 Car (market value) $15,812 401K $97,108 Exs wedding ring (appraised) $4,250 acre of land/shop (mkt value) $74,930 House (market value) $172,000 Past-due taxes on property $1,938 Unpaid earnings from work $2,355 Woodworking tools $5,500 Loan balance (Land/Shop) $72,004 Debt to mechanic for repairs $1,086 Boat (market value) $4,825 Whole life insurance face value $6,264 Checking account $3,994 Home/Auto Insurance (monthly) $322