Ledio and Isabel Greene

5.Ledio and Isabel Greene have the following assets, liabilities, income, and expenses. Use this information to answer the questions that follow:

Yearly income: $99,000

Value of home: $190,000

Value of cars: $32,000

Monetary Assets: $30,000

Mortgage on house: $150,000 with twenty-four years remaining on the loans

Auto loans: $14,000 with three years remaining on the loans

Student loans: $92,000 with five years remaining on the loans

Mortgage payment: $1,200

Utilities: $500

Car payments: $550

Groceries: $900

Taxes: $3,000

Discretionary expenses: $1,000

a.What is their current net worth situation?

b.What is their current discretionary cash flow position?

c.What is their current ratio?

d.What is their debt ratio?

e.What is their savings ratio (assume that any discretionary cash flow is used for savings)?

f.Ledio and Isabel are considering purchasing a new car. The car will cost $30,000. They plan to borrow the entire amount of the car purchase. By how much will their net worth increase or decrease?