Personal Financial Statements

Lisa is trying to get her personal finances in order. She does not know how to organize the following information.

Mortgage Payment 1,410 House 350,000 Credit Card Balance 11,160 After-tax Income 3,600 Groceries Expense 288 Car 18,000 Clothing Owned 540 Car Loan Payment 532 Furniture 14,000 Car Loan 12,000 Car Maintenance 280 Utilities Expense 120 Cash in bank 600 Mortgage 217,200 Recreation Expense 480

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.

b) Calculate the values and comment on each of them: (i) savings rate, (ii) liquidity ratio, (iii) debt-to-asset ratio.

c) Make at least 4 recommendations to help Lisa improve her money management?

Long answers and explanations with specific details, please!!