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Victor and Maria spent some time making up their first balance sheet, which is shown in Table 3 - 2 . Victor and Maria are
Victor and Maria spent some time making up their first balance sheet, which is shown in
Table Victor and Maria are a bit confused about how various financial activities can affect
their net worth.
a Assume that their home is now appraised at $ and the value of their automobile
has dropped to $ Calculate and characterize the effects of these changes on their net
worth and on their assettodebt ratio.
b If Victor and Maria take out a bank loan for $ and pay off their credit card debts
totaling $ what effects would these changes have on their net worth?
c If Victor and Maria sell their New York bond and put the cash into the savings
account, what effects would this have on their net worth and liquidity ratio?
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