$3320$: Unit $1$ Project LG$3$ and LG$4$

Learning Objectives:

LG$3$: Use financial statements to calculate ratios and debt limitation$.$

LG$4$: Identify how to avoid bad approaches to debt management.

Section I:

Please use the financial statement below to calculate the ratios listed in the below table. The Mitchells total yearly income available for living expenses is $$56,000$ a year. Please make sure to show your work on the calculations!

$\backslash$table$[[$The Mitchells$],[$Assets$,,$Liabilities,Monthly,Total Owed,,$],[$Home$,$$$172,000\mathrm{.}00,$Home,$$1,375\mathrm{.}00,$$$112,000\mathrm{.}00,,],[$Cars$,$$$12,900\mathrm{.}00,$Cars,$$412\mathrm{.}00,$$$14,900\mathrm{.}00,,],[$Bank Account,$$2,379\mathrm{.}00,$Student Loans,$$215\mathrm{.}00,$$$38,790\mathrm{.}00,,],[$Savings Account,$$4,950\mathrm{.}00,$Other Living Expenses,$$1,890\mathrm{.}00,,,],[401k,$$$26,000\mathrm{.}00,$Current Bills,$$496\mathrm{.}00,,,]]$

$\backslash$table$[[$Ratios$],[$Area$,$Calculations,Answers$],[$Current Ratio,,$],[\backslash$table$[[$Month$\text{'}$s Living$],[$Expenses Covered Ratio$]],,],[$Debt Ratio,,$],[\backslash$table$[[$Long$-$Term Debt$],[$Coverage Ratio$]],,]]$