Question: 8. Financial statement ratios Financial Statement Ratios Financial statement ratios play an important role in understanding and interpreting financial data. The solvency, liquidity, savings, and

8. Financial statement ratios Financial Statement Ratios Financial statement ratios play

8. Financial statement ratios Financial Statement Ratios Financial statement ratios play an important role in understanding and interpreting financial data. The solvency, liquidity, savings, and debt service ratios are important tools that will provide you with information, helping you chart and improve your personal financial planning. Complete the equations for each of the following financial statement ratios. Solvency Ratio = Liquidity Ratio = Savings Ratio = Deht Service Ratio= Brock Newman has prepared his annual financial statements in order to analyze the data. The data provided are items from Brack's balance sheet and income and expense statement. Use the data provided to calculate Brock's financial statement ratios. Enter your answers as percentages rounded to two decimal places. For example, .15006 would be entered as "15.01%." Brock's Financial Data Total liquid assets $483 Total assets $9,650 Total current debts $2,413 Total net worth $3,378 Total cash surplus $175.3333 Income after taxes $1,438 Total monthly loan payments $316 Monthly gross (before-tax) income $1,753.3333 96 % 9 Brock's solvency ratio: Brock's liquidity ratio: Brock's savings ratio: Brock's debt service ratio

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