Salleh and Hawa have been married for 5 years. They own a condominium in Petaling Jaya, and have no children. Salleh is 28 and Hawa is 26 years old respectively. Both have set their longest term financial goal 34 years from now for their retirement. Salleh has just completed his final year as an engineer, working in an manufacturing company. Hawa an MBA graduate is working at a local advertising company. Both love to travel and enjoy water sports. Before they want to start a family, they want to to ensure that they are financially stable and have set up their childrens education fund and well as meet all their short and medium goals. They have decided to compile a list of their expenses so that they can see clearly. Below are information of their expenses so they can a regular savings program:-

i) Analyse and explain the couple's financial performance by applying 6 personal finance ratios. (10 marks)

• Net Worth Ratio.
• The Current Ratio.
• Debt-To-Income Ratio.
• Personal Cost of Debt
• Life Insurance Ratio
• Retirement Savings Ratio

*PLEASE DO NOT USE EXCEL SOFTWARE AS TO SOLVE THESE QUESTIONS*

Items Annual Expenditures (RM) 19,200 240,000 6,000 3,040 4,800 Balance of long term loan (from parents) Wages and Salary - Salleh Jewellery and artwork Current account - Salleh Homeowner fire insurance premium payment Wages and Salary - Hawa Condominium (market value) Life insurance premium payment Stocks Stock dividend received Salleh's bonus Toyota Camry (market value) Auto insurance premium payment Short term loan Dental/medical bills Mortgage payment Household furnishing Credit card balance - Hawa House repair 93,400 900,000 7,460 15,000 480 12,200 92,000 7,120 700 500 47280 14,800 1,200 4200 9,000 640,000 10,080 16,000 2,900 1,880 73,276 3,200 17,400 4,000 780 10,000 15,200 7000 1920 Mutual funds Outstanding housing loan Auto loan payment Retirement funds Savings Account - Hawa Credit card balance- Salleh Income tax-Salleh and Hawa Money market funds and deposits Balance of auto loan Corporate bonds Corporate bond interest received Credit card limit - Salleh and Hawa (each) Education loan Electric and water and cable tv bills Phone bill and internet Maintenance fee for condo Groceries Car maintenance Fine dining Hospital bills Medical checkup for both Shopping expenses Property tax Purchase 3 unit air conditioner Laundry, cosmetics and hair care Vacation Tuition fee and books Holiday/birthday gifts Education loan payment Paid parents' loan 960 9700 9,060 13,600 1,220 9,000 6,800 8,400 5,000 2,800 18,520 5,600 860 3,600 2,400 Items Annual Expenditures (RM) 19,200 240,000 6,000 3,040 4,800 Balance of long term loan (from parents) Wages and Salary - Salleh Jewellery and artwork Current account - Salleh Homeowner fire insurance premium payment Wages and Salary - Hawa Condominium (market value) Life insurance premium payment Stocks Stock dividend received Salleh's bonus Toyota Camry (market value) Auto insurance premium payment Short term loan Dental/medical bills Mortgage payment Household furnishing Credit card balance - Hawa House repair 93,400 900,000 7,460 15,000 480 12,200 92,000 7,120 700 500 47280 14,800 1,200 4200 9,000 640,000 10,080 16,000 2,900 1,880 73,276 3,200 17,400 4,000 780 10,000 15,200 7000 1920 Mutual funds Outstanding housing loan Auto loan payment Retirement funds Savings Account - Hawa Credit card balance- Salleh Income tax-Salleh and Hawa Money market funds and deposits Balance of auto loan Corporate bonds Corporate bond interest received Credit card limit - Salleh and Hawa (each) Education loan Electric and water and cable tv bills Phone bill and internet Maintenance fee for condo Groceries Car maintenance Fine dining Hospital bills Medical checkup for both Shopping expenses Property tax Purchase 3 unit air conditioner Laundry, cosmetics and hair care Vacation Tuition fee and books Holiday/birthday gifts Education loan payment Paid parents' loan 960 9700 9,060 13,600 1,220 9,000 6,800 8,400 5,000 2,800 18,520 5,600 860 3,600 2,400