Using the PFS constructed below:

1. Compute the liquidity ratio

2. Compute outside net worth and adjusted net worth, assuming that your bank is making a loan to a privately held business that is valued at 200,000$ on his statement, and Richards will be fully guaranteeing the loan

PERSONAL FINANCIAL STATEMENT OF MICHAEL RICHARDS AS OF SEPTEMBER 30, 20xx Assets: Cash Mutual fund 401(k) Receivable due from friends Due from parents Home/residence Liabilities: S15,000Credit cards s 20,000 Auto debt $ 135,000 Boat loan $ 10,000 Residence mortgage s 10,000Total Liabilities: $ 225,000 $ 5,000 $15,000 12,000 $ 155.000 $187,000 Value of privately held company $200,000 Personal property Auto Boat Total Assets 35,000 $25,000 $20,000 Net Worth: 695,000 Total Liabilities and Net Worth Total Liabilities: 695,000