Mr. John is trying to measure his financial health using ratios (also known as financial thermometers). He is also planning to pay off his car loan in five (5) years and receiving a monthly gross salary of RM8,000. He has listed the following items from his most recent statements.

Savings account: RM9,200

Checking account: RM800

Credit card balance: RM8,000

Car loan balance: RM20,000

Car market value: RM10,000

Furniture; market value: RM5,000

Stocks and bonds: RM20,000

1. Assuming that Mr. John has no current bills other than those that are listed, what is his current ratio?

Select one:

a. 1.25 times

b. 9,200/8,000

c. 2 times

d. Not enough information available

e. 0.59 times

2. What is Mr. Johns saving ratio?

Select one:

a. 6.69 percent

b. 10.5 percent

c. Not enough information to answer this question

d. 7.44 percent

e. 5 percent 3.

Assuming that Mr. Johns annual living expenditure is RM90,000. How long will this emergency fund last?

Select one:

a. 9 to 12 months

b. 18 to 36 months

c. 1 to 2 months

d. 3 to 6 months