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.
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, letâ€™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