Using the data from the cash-flow statement developed by Harry and Belinda, calculate the following...
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Finance
Using the data from the cashflow statement developed by Harry and Belinda, calculate the following financial ratios. Round your answers to two decimal places.
Liquidity ratio
Assettodebt ratio
Debttoincome ratio
Debt paymentstodisposable income ratio
Hint: For disposable income, take into consideration health life insurance, as well as federal, state, and social security taxes.
Investment assetstototal assets ratio
What do these ratios tell you about the Johnsons' financial situation? Should Harry and Belinda incur more debt, such as credit cards or a new vehicle loan?
On the basis of these ratios, the Johnsons
Select
use their monthly net gain to build an emergency fund. Their debttoincome ratio indicates they
Select
be able to handle more debt if desired.
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