Using the data from the cash$-$flow statement developed by Harry and Belinda, calculate the following financial ratios. Round your answers to two decimal places.

Liquidity ratio

$\%$

Asset$-$to$-$debt ratio

$\%$

Debt$-$to$-$income ratio

$\%$

Debt payments$-$to$-$disposable income ratio

Hint: For disposable income, take into consideration health life insurance, as well as federal, state, and social security taxes.

$\%$

Investment assets$-$to$-$total assets ratio

$\%$

What do these ratios tell you about the Johnsons' financial situation? Should Harry and Belinda incur more debt, such as credit cards or a new vehicle loan?

On the basis of these ratios, the Johnsons

$-$Select$-$

use their monthly net gain to build an emergency fund. Their debt$-$to$-$income ratio indicates they

$-$Select$-$

be able to handle more debt if desired.