Answer:
Following data is used
Liquid assets: $14,000
home value: $230,000
monthly mortgage payment: $1,350
investment assets: $95,000
personal property: $22,000
total assets: $361,000
short-term debt: $4,200 ($350 a month)
long-term debt: $170,000 ($2,200 a month)
total debt: $174,200;
monthly gross income: $14,000
monthly disposable income: $6,400
monthly expenses: $6,500.
1. Liquidity ratio = Liquid Asset / Short term debt = 14,000 / 4,200 = 3.33 = 333%
2. Asset-to-debt ratio = Total Asset / Total Debt = 361,000 / 174,200 = 2.07 = 207%
3. Debt-to-income ratio
Total Debt / Gross monthly Income = 174,200 / 14,000 = 12.44 = 1244%
Or
Monthly Debt payment / Monthly gross income = ( 2,200 + 350 ) / 14,000 = 0.1821 = 18.21%
4. Debt payments-to-disposable income ratio = Total Monthly Debt / Monthly Disposable Income = ( 2,200 + 350 ) / 6,400 = 2,550 / 6400 = 0.3984 = 39.84%
5. Investment assets-to-total assets ratio = Total Investment Assets / Total Assets = 95,000 / 361,000 = 0.2632 = 26.32%
Explanation:
* The ratios to be calculates has been mentioned in this question, so A similar question is attached with this answer. The answer is made according to the requirement of the attached question.
