Lina has provided you with the following information to help prepare for the meeting with the bank on July 1, 2020. She is looking to buy a home and knows that the bank will be looking at several ratios to determine how comfortable they are in her ability in meeting loan repayments from the income she earns.

Item	Value or amounts as of July 1, 2020
Savings account (monthly savings of $500 over last 12 months)	$6,000
Furniture	$8,750
Car	$20,500
Monthly VISA payment	$1,200
Disposable income	$89,200
Registered Retirement Savings Plan (RRSP)	$49,550
Monthly rent	$2,600
Weekly food purchases	$100
Other monthly expenses	$2,700
Tax-Free Savings Account (TFSA)	$5,000

1. What is her Net Worth (note that Linas Debt-To-Asset Ratio is 0.9)? (.5 mark)

Calculation: (.5 mark)

1. What is her Liquidity Ratio? (.5 mark)

Calculation: (.5 mark)

1. What is her Savings Ratio? (.5 mark)

Calculation: (.5 mark)

1. Lina is hoping that after the bank runs the ratios, that she will receive a pre-approval certificate for her mortgage so she has a guarantee on the amount of a mortgage that she can obtain. Explain to Lina what this certificate is. (.5 mark)