Using the data from the cash-flow statement developed by Harry and Belinda, calculate a liquidity ratio, asset-to-debt ratio, debt-to-income ratio, debt payments-to-disposable income ratio, and 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?

Balance Sheet for Harry and Belinda Johnson January 1, 2018 Cash-Flow Statement for Harry and Belinda Johnson July 1-December 31, 2017 (First Six Months of UtilitiesCellphonesAutogas/maintenancerrepairsDoctorsanddentistsbillsMedicinesClothingandupkeepChurchandcharityGiftsPublictransportationPersonalallowancesEntertainmentFamilyholidaytripSummervacationMiscellaneousTotalVariableExpensesTotalExpensesSURPLUS(DEFiCIT)1,3206601,1501,1403501,2005501,0709402,4009607801,200560$22,940$63,650$1302.1%1.0%1.8%1.8%0.5%1.9%0.9%1.7%1.5%3.8%1.5%1.2%1.9%0.9%36.0%99.8%0.2% Balance Sheet for Harry and Belinda Johnson January 1, 2018 Cash-Flow Statement for Harry and Belinda Johnson July 1-December 31, 2017 (First Six Months of UtilitiesCellphonesAutogas/maintenancerrepairsDoctorsanddentistsbillsMedicinesClothingandupkeepChurchandcharityGiftsPublictransportationPersonalallowancesEntertainmentFamilyholidaytripSummervacationMiscellaneousTotalVariableExpensesTotalExpensesSURPLUS(DEFiCIT)1,3206601,1501,1403501,2005501,0709402,4009607801,200560$22,940$63,650$1302.1%1.0%1.8%1.8%0.5%1.9%0.9%1.7%1.5%3.8%1.5%1.2%1.9%0.9%36.0%99.8%0.2%