Note: Net income means the same as "after tax" income.

1.Calculate Carmelos net worth.

2.Calculate Carmelos liquidity ratio.

3.Can Carmelo go more than a month without a paycheck?

4.Calculate Carmelo's current ratio and complete the sentence: For every $1 in current liabilities Carmelo has $ ______ in liquid assets.

5.Calculate Carmelos debt ratio. Explain what it means.

6.Calculate Carmelos savings ratio. Explain what it means.

7.Calculate Carmelos debt payment ratio (do not include mortgage payment). Explain if Carmelo is in the

8.Calculate Carmelos mortgage debt service ratio. Explain what it means.

Assets Debts Other Total assets: $180,000 Credit card balance: $1,500 Of the total: Liquid assets $5,000Long-term debt: $160,000 Monthly gross income: $10,000 Other short-term debt: $4,500 Monthly net income: $7,000 Monthly mortgage payment including principal, interest, taxes and insurance: $1,300 Other monthly debt payments: $450 Total monthly expenses: $6,200 Monthly savings: $700 Total Debt: $166,000