Question
Lisa is trying to get her personal finances in order.She does not know how to organize the following information. Mortgage Payment 1,175 House 210,000 Credit
Lisa is trying to get her personal finances in order.She does not know how to organize the following information.
Mortgage Payment
1,175
House
210,000
Credit Card Balance
9,300
After-tax Income
3,000
Groceries Expense
240
Car
15,000
Clothing
450
Car Loan Payment
360
Furniture
10,000
Car Loan
10,000
Car Maintenance
150
Utilities Expense
100
Cash in bank
500
Mortgage
181,000
Recreation Expense
400
Lisa has come to you for help.
(a)Organize the above financial information into a properly formatted (i) Personal Cash Flow Statement and (ii) Personal Balance Sheet. (10 marks)
(b) Calculate the values and comment on each of them: (i) savings rate, (ii) liquidity ratio, (iii) debt-to-asset ratio. (6 marks)
(c) Make at least 4 recommendations to help Lisa her improve her money management? (4 marks)
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