Question
Lisa is trying to get her personal finances in order. Lisa has come to you for help. She does not know how to organize the
Lisa is trying to get her personal finances in order. Lisa has come to you for help. She does not know how to organize the following information.
| Mortgage Payment | 1,600.00 |
| House | 300,000.00 |
| Credit Card Balance | 5,200.00 |
| After-tax Income | 3,600.00 |
| Groceries per month | 420.00 |
| Credit card payment | 350.00 |
| Car | 13,000.00 |
| Shopping | 575.00 |
| Car Payment | 420.00 |
| Furniture in house | 10,000.00 |
| Car Loan | 12,000.00 |
| Car Maintenance | 200.00 |
| Utilities | 120.00 |
| Cash in bank | 900.00 |
| Mortgage Balance | 242,000.00 |
| Recreation monthly | 300.00 |
Required:
1. Organize the above financial information into a properly formatted Personal Cash Flow Statement and Personal Balance Sheet.
2. Calculate the following and comment on the results of each.
a) What is Lisas Savings Rate?
b) What is Lisas Liquidity Ratio?
c) What is Lisas Debt-to-Asset Ratio?
3. Make recommendations (at least 4) to Lisa to help her improve her money management?
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Mutual Fund Industry Handbook
Authors: Gremillion
1st Edition
0471736244, 978-0471736240
