Question
Use the following balance sheet and cash flow statement information to answer the questions below. Liquid assets: $15,000; home value: $220,000; monthly mortgage payment: $1,400;
Use the following balance sheet and cash flow statement information to answer the questions below. Liquid assets: $15,000; home value: $220,000; monthly mortgage payment: $1,400; investment assets: $80,000; personal property: $20,000; total assets: $335,000; short-term debt: $6,600 ($550 a month); long-term debt: $160,000 ($2,000 a month); total debt: $166,600; monthly gross income: $14,000; monthly disposable income: $6,900; monthly expenses: $4,000. Calculate the ratios below. Round your answers to two decimal places.
Liquidity ratio.
Asset-to-debt ratio.
Debt-to-income ratio.
______%
Debt payments-to-disposable income ratio.
______%
Investment assets-to-total assets ratio.
______%
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started