Use the cash flow statement to answer the following question.

Miller Family

Cash Flow Statement

As of December $31,20$XX

INFLOWS

$$Gross salaries $$80,000$

$$Dividends $7,000$

$$Interest $3,500$

TOTAL INFLOWS $$90,500$

OUTFLOWS

$$Savings and Investments $$9,800$

$$Fixed Outflows

$$Insurance premiums $$1,550$

$$Student loan payments $9,500$

$$Mortgage pyts$.($PITI$)18,700$

$$Total Fixed Outflows $$29,750$

$$Variable Outflows

$$Taxes $$19,225$

$$Food $7,500$

$$Vacations $9,200$

$$Transportation $4,600$

$$Utilities $6,800$

$$Gifts $1,430$

$$Total Variable Outflows $$48,755$

$$TOTAL OUTFLOWS $$88,305$

NET INFLOW $$2,195$

What is the Millers' front$-$end debt$-$to$-$income $($housing cost$)$ ratio, and is it at an acceptable level?