Pat and Marie have the following expenses and account balances:

Pats annual 401(k) plan contribution $ 16,500

Pats annual salary $100,000

Current liabilities $ 24,000

Housing costs (P&I&T&I) monthly $ 2,167

Cash & Cash equivalents $ 18,000

Monthly nondiscretionary cash flows $ 6,000

Monthly debt payments other than housing $ 500

* Pats employer matches $1 for $1 up to 3% of Pats salary in his 401(k) plan.

1. Based on the information above, calculate Pat and Maries current ratio in numbers.

a.

0.75:1

b.

1:1

c.

1:1.3

d.

2:1

2. Based on the information above, calculate Pat and Maries housing ratio 1 in numbers.

a.

20%

b.

22%

c.

24%

d.

26%

3. Based on the information above, calculate Pat and Maries housing ratio 2.

a.

28%

b.

30%

c.

32%

d.

34%

4. Based on the information above calculate their savings rate:

a.

16.5%

b.

17.5%

c.

18.5%

d.

19.5%

5. Based on the information above, calculate Pat and Maries emergency fund ratio in numbers.

a.

0.25

b.

1

c.

2

d.

3