Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. assignments for the corresponding assignment. use

assignments for the corresponding assignment. Use the following balance sheet and cash flow information to determine the net...

50.1K

Verified Solution

Question

Finance

assignments for the correspondingassignment.

  1. Use the following balance sheet and cash flow information todetermine the net worth and net surplus for an individual in arecent month:

Liquid Assets $15,000

Home Value $220,000

Investment assets: $120,000

Personal Property $30,000

Total assets: $385,000

Short Term Debt: $7000 ($250 amonth)

Monthly Mortgage Payment $1400 on a$180,000 mortgage

Total Debt: $187,000

Monthly Gross Income: $11,000

Monthly Disposable Income $ 4000

Monthly Expenses: $7000

  1. Now that the individual in question 1 has a betterunderstanding of their situation, let’s analyze further. Given thebalance sheet and cash-flow statement information in question 1,calculate the following ratios see page 87:

Liquidity Ratio

Asset-to-Debt Ratio

Debt-to-Income Ratio

Debt payments-to-disposable incomeratio

Investment assets-to-total assetsratio

Answer & Explanation Solved by verified expert
4.1 Ratings (691 Votes)
Q1 1Networth It is the difference of Total assets and Total liabilities 385000 187000 198000 2Net surplus it is the difference of Monthly gross income and expenses 11000 7000 4000 Q2    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Find the symmetric image of P(−28,18,20) about the plane passing through Q(0,0,0) and perpendicular to the...

Advance Math
Q

A sample containing acetaminophen was dissolved in water to make a 50.00-mL solution. The solution was...

Chemistry
Q

Pretend that you are a psychologist who is meeting with a client concerned about her 14-year-old....

Psychology
Q

A magnetic field has a magnitude of 1.2e-3 T, and an electric field has a magnitude...

Physics
Q

2 K A 2 3 sin L cos L O sin J 30 L equal...

Geometry
Q

Given f(x)=?x and g(x) = x - 25, evaluate each expression.

Basic Math
Q

Packet on the composition of functions If f x 38 4 x 11 and g...

Calculus
Q

TABLE 1 Future Value of $1 FV=$1 (1 + i)n 1.5% n/i 1.0%...

Accounting
Q

Merchandise inventory that cost 690,000 is reported on the balance sheet at 620,000, the expected...

Accounting
Q

Assume that The AM Bakery is preparing a budget for the month ending October 3t....

Accounting
Q

during the month direct labor totaled to 20,000 and direct labor cost was 50% of...

Accounting
Q

how do you solve the attached question?

Accounting