Question
The following information is the present and forecasted cash flow and balance sheet for Tanya Abbott. Using this information, calculate her net worth ratio, liquidity
The following information is the present and forecasted cash flow and balance sheet for Tanya Abbott. Using this information, calculate her net worth ratio, liquidity ratio, debt service ratio and savings ratio for her present situation as well as her forecasted position. (2 marks)
Cash flow statement
Forecasted ($)
Present ($)
Salary
104000
84000
Household expenses
80000
60000
Other expenses
5000
4000
Loan payments
13000
10000
Interest
1500
1500
Cash surplus
4500
8500
Balance sheet
Forecasted ($)
Present ($)
Assets
Liquid assets
4245
1700
Investments
13250
11500
Personal property
21750
14000
Total assets
39245
27200
Liabilities
Current liability
6240
2150
Long-term liabilities
14125
13000
Total liabilities
20365
15150
Net Worth
18880
12050
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Payroll Accounting 2020
Authors: Bernard J. Bieg, Judith A. Toland
30th edition
357117174, 978-0357117170
