Jake does not currently have regular savings built into his cash flow statement to meet his goals. He would like to accomplish all of the following goals in the next few years: . Buy a house valued at about $210,000 Buy a new truck valued at $27,000 Establish an emergency fund of $5,000 Start saving for retirement . Begin saving for a honeymoon (3 years away) Establish discretionary savings for gift giving and other discretionary spending . Maintain his ability to be a competitive triathlete To begin identifying Jake's options in reference to his goals answer the following questions: 1. Analyze Jake's cash flow statement. a. Calculate his net worth, asset to debt ratio, investment assets to total assets ratio, liquidity ratio, and debt service to income ratio. b. Are these ratios in an acceptable range for him? If not, suggest strategies to start improving them. Create a new budget for Jake by adjusting some of his expenses that you feel are either too high C. or too low. Be specific about how much he should spend in each category and be sure to justify why you feel this change is worth making. 2. Help Jake save up for a down payment for a house. He figures he will need to have $7,350 for a down payment before he can buy a house. a. Calculate how much Jake must save each month to reach his goal in 12 months, assuming he uses his savings account. 3. Help Jake buy a new Toyota Tacoma for $27,000. a. Calculate his monthly truck payment if he can get a loan with an interest rate of 2.5% over 72 months. b. Calculate his other costs of buying the truck. If he buys the truck his auto insurance will increase to $135 per month, but his auto maintenance expenses will fall to approximately $220 per month. Can Jake afford to buy the truck with his current budget? Explain what he might have to sacrifice in order to afford the truck. 4. Help Jake build his emergency fund. 4. Help Jake build his emergency fund. a. Determine how much Jack should have in liquid assets in order to have a comfortable liquidity ratio. b. Calculate how much he must save each month to fill his emergency fund within 12 months. 5. Jake is considering changing to the "extended repayment plan on his student loans. If he does this, the loans will take 20 years to pay off instead of 10. a. Calculate his new monthly payments for all of his student loans if the term changes to 20-years. How much lower will his total students loan payment be if he changes to the 20-year repayment plan? b. c. Is this something Jake should consider doing to help him achieve his other cash management goals? 6. Using the figures you calculated in # 1-5, give Jake a final and comprehensive set of recommendations for what he should do to balance his budget and reach his goals. Jake may not be able to accomplish all of his goals, so you will need to either adjust his goals (like buying a cheaper car/house) or prioritize which goals he should focus on first. Be specific, creative, and as realistic as possible. Jake does not currently have regular savings built into his cash flow statement to meet his goals. He would like to accomplish all of the following goals in the next few years: . Buy a house valued at about $210,000 Buy a new truck valued at $27,000 Establish an emergency fund of $5,000 Start saving for retirement . Begin saving for a honeymoon (3 years away) Establish discretionary savings for gift giving and other discretionary spending . Maintain his ability to be a competitive triathlete To begin identifying Jake's options in reference to his goals answer the following questions: 1. Analyze Jake's cash flow statement. a. Calculate his net worth, asset to debt ratio, investment assets to total assets ratio, liquidity ratio, and debt service to income ratio. b. Are these ratios in an acceptable range for him? If not, suggest strategies to start improving them. Create a new budget for Jake by adjusting some of his expenses that you feel are either too high C. or too low. Be specific about how much he should spend in each category and be sure to justify why you feel this change is worth making. 2. Help Jake save up for a down payment for a house. He figures he will need to have $7,350 for a down payment before he can buy a house. a. Calculate how much Jake must save each month to reach his goal in 12 months, assuming he uses his savings account. 3. Help Jake buy a new Toyota Tacoma for $27,000. a. Calculate his monthly truck payment if he can get a loan with an interest rate of 2.5% over 72 months. b. Calculate his other costs of buying the truck. If he buys the truck his auto insurance will increase to $135 per month, but his auto maintenance expenses will fall to approximately $220 per month. Can Jake afford to buy the truck with his current budget? Explain what he might have to sacrifice in order to afford the truck. 4. Help Jake build his emergency fund. 4. Help Jake build his emergency fund. a. Determine how much Jack should have in liquid assets in order to have a comfortable liquidity ratio. b. Calculate how much he must save each month to fill his emergency fund within 12 months. 5. Jake is considering changing to the "extended repayment plan on his student loans. If he does this, the loans will take 20 years to pay off instead of 10. a. Calculate his new monthly payments for all of his student loans if the term changes to 20-years. How much lower will his total students loan payment be if he changes to the 20-year repayment plan? b. c. Is this something Jake should consider doing to help him achieve his other cash management goals? 6. Using the figures you calculated in # 1-5, give Jake a final and comprehensive set of recommendations for what he should do to balance his budget and reach his goals. Jake may not be able to accomplish all of his goals, so you will need to either adjust his goals (like buying a cheaper car/house) or prioritize which goals he should focus on first. Be specific, creative, and as realistic as possible