Please answer the questions below.

Category Amount Annual After-Tax Income $52,500 Cash Surplus $7,200 Monthly Gross (Before-Tax) Income $6.200 Net Worth $30,000 Total Assets $165,000 Total Current Debts $11,800 Total Liquid Assets $18,500 Total Monthly Loan Payments $850 2) Using, the information provided by your friend in the above table, evaluate personal financial progress utilizing key personal financial ratios by addressing the following: dj Debt Service Ratio: Discuss the purpose of this ratio and indicate how it is utilized to evaluate personal financial progress. li) Calculate your friend's ratio, label your work, and provide an interpretation of their results vil) If 35% is considered a manageable level of debt, do you think that your friend will have any problems meeting their loan payments on time? Explain why or why not. e) Liquidity Ratio: Discuss the purpose of this ratio and indicate how it is utilized to evaluate personal financial progress. Calculate your friend's ratio, label your work, and provide an interpretation of their results. ill) If creditors consider 20 (two years) to be a minimum acceptable liquidity ratio before they will grant a loan, do you think that your friend will have any problems obtaining a loan? Explain why or why not. C Savings Ratio: Discuss the purpose of this ratio and indicate how it is utilized to evaluate personal financial progress. ll] Calculate your friend's ratio, label your work, and provide an interpretation of their results. ill) Visit the Bureau of Economic Analysis Personal Savings Rate section of their website and view the most recent "Personal Savings Rate" for the average American. Is your friend above or below average? If they are below average, provide one suggestion as to how they could improve this ratio in the future. Solvency Ratio: Discuss the purpose of this ratio and indicate how it is utilized to evaluate personal financial progress. Calculate your friend's ratio, label your work, and provide an interpretation of their results. iil) Based on this result, if there is a risk that the value of your friend's assets could decrease by 20%, should your friend be concerned? Explain why or why not