Question: Use the following balance sheet and cash flow statement information to answer the questions below. Liquid assets: $14,000; home value: $210,000; monthly mortgage payment: $1,450;
Use the following balance sheet and cash flow statement information to answer the questions below. Liquid assets: $14,000; home value: $210,000; monthly mortgage payment: $1,450; investment assets: $75,000; personal property: $20,000; total assets: $319,000; short-term debt: $4,200 ($350 a month); long-term debt: $160,000 ($2,200 a month); total debt: $164,200; monthly gross income: $13,000; monthly disposable income: $6,800; monthly expenses: $5,500.
Calculate the ratios below.
Liquidity ratio.
Asset-to-debt ratio.
Debt-to-income ratio.
% Debt payments-to-disposable income ratio.
% Investment assets-to-total assets ratio.
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