You have new clients who are married, Victor and Jessica Parker. They came to your office today
Question:
You have new clients who are married, Victor and Jessica Parker. They came to your office today and provided you with the following information for the year:
Victor annual gross income = $75,000
Jessica annual gross income = $120,000
Home Value = $300,000
Victor's 401k = $22,000
Jessica's 401k = $124,000
Mortgage debt = $150,000
Student loan debt = $26,000
Credit card debt = $12,000
Cash = $5,000
Auto loan debt= $6,000
Medical debt = $14,000
Annual Savings= $12,000
Monthly student loan payment = $400
Monthly auto loan payment=$250
Monthly credit card payment=$400
Monthly mortgage payments = $1,050
Monthly mortgage Tax & Insurance = $125
-Does the Parker's savings ratio meet the recommended benchmark? Use Excel Tables for calculations.
-Does the Parker's Back end ratio meet the recommended benchmark?
-What is the Parker's Debt Ratio?
-What is the Parker's Networth?
Fundamental Managerial Accounting Concepts
ISBN: 978-0078110894
6th Edition
Authors: Edmonds, Tsay, olds