Tim and Autumn Davis are trying to figure out their current financial health. They will pay off their car loan in three years, their gross household income is $5,700 per month, and they receive $95 per month in interest income from their investments. They have listed the following items from their most recent statements. They have approximately $48,000 of expenses every year.

Savings account: $3,200

Checking account: $1,800

Credit card balance: $3,000

Car loan balance: $18,000

Car market value: $15,000

Furniture market value: $4,000

Stocks and bonds: $15,000

1) What is their current net worth?

2) Assuming that they have no current bills other than those that are listed, what is their current ratio?

3) What is their debt ratio?

Answer rating: 100% (QA)

1 To calculate their current net worth we need to add up the total value of their assets and subtrac... View the full answer