1. Based on the cash flow statement and personal balance sheet, do the Sampsons have adequate liquidity to cover their recurring cash flows and planned monthly savings in the long-run? If not, what level of savings should they maintain for liquidity purposes?

Personal Cash Flow Statement Cash Inflows This Month Dave and shamron's Combined income $4,000 $4,000 Total Cash Inflows Cash Outflows Rent/Mortgage Cable TV Electricity and water Telephone Groceries Health care insurance and expenses Clothing Car expenses (insurance, maintenance, and gas) Recreation Credit card minimum payments Other Total Cash Outflows Net Cash Flows $900 $60 $80 $70 $500 $160 $180 $300 $1,000 $20 $100 3,370 $630