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Sheila and John are preparing their personal financial statements. Their existing assets and liabilities are: Cash $3,500 Condo $400,000 Car $12,000 Savings $5,000 Mortgage $225,000

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Sheila and John are preparing their personal financial statements. Their existing assets and liabilities are: Cash $3,500 Condo $400,000 Car $12,000 Savings $5,000 Mortgage $225,000 $3,500 $10,000 $25,000 Car loan (2 years remaining) Furniture and Appliances Stocks Credit Card balance Term Deposit (5 year term) Personal loan (6 month term) $3,000 $5,000 $1,000 Sheila and John estimate their monthly living expenses to be $2,000. Based on the data presented, Sheila and John have a liquidity ratio of: 4.25 06.75 2.5 1.75

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