part A and C must

in part A options are acceptable or unacceptable

Percent 0.07 0.40 0.72 0.88 0.19 0.18 Balance Sheet for a couple with Two Children- Victor and Maria Hernandez, January 1, 2015 Dollars ASSETS Monetary Assets Cash on hand 260 Savings account 1,500 Victor's checking account 2,700 Maria's checking account 3,300 Tax refund due 700 Rent receivable 660 Total Monetary Assets $ 9,120 Tangible Assets Home 176,000 Personal property 9,000 Automobiles 11,500 Total Tangible Assets $196,500 Investment Assets Fidelity mutual funds 5,000 Scudder mutual fund 4,500 Ford Motor Company stock 3,000 New York 2018 bonds 800 Life insurance cash value 5,600 2.45% 47.20 2.41 3.08 52.69% 1.34 1.21 0.80 0.21 1.50 9.22 30.57 34,400 114,000 $167,300 $372,920 44.86% 100% 120 0.03 0.41 IRA accounts Real estate investment Total Investment Assets Total Assets LIABILITIES Short-Term liabilities Dentist bill due Credit card debt Total Short-Term Liabilities Long-Term liabilities Sales finance company: auto Savings bank: real estate Total Long-Term Liabilities Total Liabilities Net Worth Total Liabilities and Net Worth 1,545 1,665 $ 0.45% 2.12 24.70 7,900 92,100 $100,000 $101,665 $271,255 $372,920 26.82% 27.26% 72.74% 100.00% Cash-Flow Statement for a couple with Two Children- Victor and Maria Hernandez, January 1, 2015 - December 31, 2015 Dollars Percent INCOME Victor's gross salary 63,180 70.99 Maria's salary (part-time) 15,500 17.42 Interest and dividends 1.800 2.02 600 0.67 200 0.22 8.67 7,720 $89,000 100.00% 16.18 2.70 1.35 4.94 2.46 1.35 Bonus Tax refunds Net rental income Total Income EXPENDITURES Fixed Expenses Mortgage loan payments Real estate taxes Homeowner's insurance Automobile loan payments Automobile insurance and registration Life insurance premiums Medical insurance (employee portion) Emergency fund savings Revolving savings fund Federal income taxes State income taxes City income taxes Social Security taxes Personal property taxes Retirement IRAS Total fixed expenses Variable Expenses Food 3.35 2.70 14,400 2,400 1,200 4,400 2,190 1,200 2,980 2,400 1,800 11,300 4,200 1,600 6,020 950 6,000 $63,040 2.02 12.70 4.72 1.80 6.76 1.07 6.74 70.83% 4,900 5.51 Utilities 2,100 2.36 Gasoline and maintenance 3,100 3.48 Medical expenses 3,400 3.82 Medicines 1,750 1.97 Clothing and upkeep 1,950 2.19 Church 2,400 2.70 Gifts 1,400 1.57 Personal allowances 2,400 2.70 Children's allowances 2,080 2.34 Miscellaneous 480 0.54 Total Variable Expenses $25,960 29.17% Total Expenses $89,000 100.00% SURPLUS (DEFICIT) $ 0 0.00% Respond to the following questions. a. Using the data in the Hernandezes balance sheet, calculate an investment assets-to-net worth ratio. Round your answer to two decimal places. 44.86 % How would you interpret the ratio? This is an -Select- ratio for a couple with children. The Hernandez family appears to have too few monetary assets compared with tangible and investment assets. How would you suggest that they remedy that situation over the next few years? The input in the box below will not be graded, but may be reviewed and considered by your instructor. b. Comment on the couple's diversification of their investment assets. The input in the box below will not be graded, but may be reviewed and considered by your instructor. blank C. Calculate the asset-to-debt ratio for Victor and Maria. Round your answer to two decimal places. How does this information help you understand their financial situation? How do their total assets compare with their total liabilities? The input in the box below will not be graded, but may be reviewed and considered by your instructor. blank d. The Hernandezes seem to receive most of their income from employment rather than investments. What actions would you recommend for them to remedy that imbalance over the next few years? The input in the box below will not be graded, but may be reviewed and considered by your instructor. blank e. The Hernandezes want to take a two-week vacation next summer, and they have only eight months to save the necessary $2400. What reasonable changes in expenses might they consider to increase net surplus and make the needed $300 per month? The input in the box below will not be graded, but may be reviewed and considered by your instructor. blank Percent 0.07 0.40 0.72 0.88 0.19 0.18 Balance Sheet for a couple with Two Children- Victor and Maria Hernandez, January 1, 2015 Dollars ASSETS Monetary Assets Cash on hand 260 Savings account 1,500 Victor's checking account 2,700 Maria's checking account 3,300 Tax refund due 700 Rent receivable 660 Total Monetary Assets $ 9,120 Tangible Assets Home 176,000 Personal property 9,000 Automobiles 11,500 Total Tangible Assets $196,500 Investment Assets Fidelity mutual funds 5,000 Scudder mutual fund 4,500 Ford Motor Company stock 3,000 New York 2018 bonds 800 Life insurance cash value 5,600 2.45% 47.20 2.41 3.08 52.69% 1.34 1.21 0.80 0.21 1.50 9.22 30.57 34,400 114,000 $167,300 $372,920 44.86% 100% 120 0.03 0.41 IRA accounts Real estate investment Total Investment Assets Total Assets LIABILITIES Short-Term liabilities Dentist bill due Credit card debt Total Short-Term Liabilities Long-Term liabilities Sales finance company: auto Savings bank: real estate Total Long-Term Liabilities Total Liabilities Net Worth Total Liabilities and Net Worth 1,545 1,665 $ 0.45% 2.12 24.70 7,900 92,100 $100,000 $101,665 $271,255 $372,920 26.82% 27.26% 72.74% 100.00% Cash-Flow Statement for a couple with Two Children- Victor and Maria Hernandez, January 1, 2015 - December 31, 2015 Dollars Percent INCOME Victor's gross salary 63,180 70.99 Maria's salary (part-time) 15,500 17.42 Interest and dividends 1.800 2.02 600 0.67 200 0.22 8.67 7,720 $89,000 100.00% 16.18 2.70 1.35 4.94 2.46 1.35 Bonus Tax refunds Net rental income Total Income EXPENDITURES Fixed Expenses Mortgage loan payments Real estate taxes Homeowner's insurance Automobile loan payments Automobile insurance and registration Life insurance premiums Medical insurance (employee portion) Emergency fund savings Revolving savings fund Federal income taxes State income taxes City income taxes Social Security taxes Personal property taxes Retirement IRAS Total fixed expenses Variable Expenses Food 3.35 2.70 14,400 2,400 1,200 4,400 2,190 1,200 2,980 2,400 1,800 11,300 4,200 1,600 6,020 950 6,000 $63,040 2.02 12.70 4.72 1.80 6.76 1.07 6.74 70.83% 4,900 5.51 Utilities 2,100 2.36 Gasoline and maintenance 3,100 3.48 Medical expenses 3,400 3.82 Medicines 1,750 1.97 Clothing and upkeep 1,950 2.19 Church 2,400 2.70 Gifts 1,400 1.57 Personal allowances 2,400 2.70 Children's allowances 2,080 2.34 Miscellaneous 480 0.54 Total Variable Expenses $25,960 29.17% Total Expenses $89,000 100.00% SURPLUS (DEFICIT) $ 0 0.00% Respond to the following questions. a. Using the data in the Hernandezes balance sheet, calculate an investment assets-to-net worth ratio. Round your answer to two decimal places. 44.86 % How would you interpret the ratio? This is an -Select- ratio for a couple with children. The Hernandez family appears to have too few monetary assets compared with tangible and investment assets. How would you suggest that they remedy that situation over the next few years? The input in the box below will not be graded, but may be reviewed and considered by your instructor. b. Comment on the couple's diversification of their investment assets. The input in the box below will not be graded, but may be reviewed and considered by your instructor. blank C. Calculate the asset-to-debt ratio for Victor and Maria. Round your answer to two decimal places. How does this information help you understand their financial situation? How do their total assets compare with their total liabilities? The input in the box below will not be graded, but may be reviewed and considered by your instructor. blank d. The Hernandezes seem to receive most of their income from employment rather than investments. What actions would you recommend for them to remedy that imbalance over the next few years? The input in the box below will not be graded, but may be reviewed and considered by your instructor. blank e. The Hernandezes want to take a two-week vacation next summer, and they have only eight months to save the necessary $2400. What reasonable changes in expenses might they consider to increase net surplus and make the needed $300 per month? The input in the box below will not be graded, but may be reviewed and considered by your instructor. blank