Question 1:

Based on the following data, calculate the ratios requested:

Liabilities $7,000

Liquid assets $5,200

Monthly credit payments $540 Monthly savings $180

Net worth $48,000 Current liabilities $950 Take-home pay $2,600

Gross income $2,850

a. Debt ratio:

Liabilities/Net worth ____________________________________________________________________

b. Current ratio:

Liquid assets/Current Liabilities

____________________________________________________________________

c. Debt-payment ratio:

Monthly credit payments/Take-home pay

________________________________________________________________

d. Saving ratio:

Monthly savings/Gross income

______________________________________________________________