assignments for the correspondingassignment.
- 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
- 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
