Pat and Marie have the following expenses and account balances: Pat’s annual 401(k) plan contribution $ 16,500 Pat’s...

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Accounting

Pat and Marie have the following expenses and accountbalances:
Pat’s annual 401(k) plan contribution            $ 16,500
Pat’s annualsalary                                         $100,000
Currentliabilities                                            $ 24,000
Housing costs (P&I&T&I)monthly                  $    2,167
Cash & Cashequivalents                               $18,000
Monthly nondiscretionary cash flows             $  6,000
Monthly debt payments other than housing   $      500
* Pat’s employer matches $1 for $1 up to 3% of Pat’s salaryin his 401(k) plan.
1. Based on the information above, calculate Pat and Marie’scurrent ratio in numbers.
a. 0.75:1
b. 1:1
c. 1:1.3
d. 2:1
2. Based on the information above, calculate Pat and Marie’shousing ratio 1 in numbers.
a. 20%
b. 22%
c. 24%
d. 26%
3. Based on the information above, calculate Pat and Marie’shousing ratio 2.
a. 28%
b. 30%
c. 32%
d. 34%
4. Based on the information above calculate their savingsrate:
a. 16.5%
b. 17.5%
c. 18.5%
d. 19.5%
5. Based on the information above, calculate Pat and Marie’semergency fund ratio in numbers.
a. 0.25
b. 1
c. 2
d.
3

Answer & Explanation Solved by verified expert

4.1 Ratings (611 Votes)

We can calculate required ratios for pat and maries as follows 1 Current Ratio Current Ratio can be calculate by dividing all current assets by all current liabilities in the given problem total of current assets would be 18000 of cash equivelants and current liabilities given as See Answer

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