Calculate the emergency fund ratio and solvency ratio

Assignment Help Financial Management

Reference no: EM131467167

Family Resource Management Assignment

James (36) and Nikki (33) have a daughter (3). Nikki works for ABC Company and James is self-employed. They bought a house four years ago as their primary residence. Their health insurance plan (BlueCross) is offered by ABC Company. Neither of them has life insurance or disability insurance. James does not buy business liability insurance for his mechanic shop. They do not have will or trust. They do not name guardian for their daughter, either.

1. Calculate the following ratios and comment on your results. (60 points) Show your work for full credits.

a. Solvency ratio

b. Current ratio

c. Emergency fund ratio

d. Savings ratio

e. Front-end ratio (housing-expenses)

f. Back-end ratio (total debt)

2. Based on their financial statements and calculations, evaluate their financial strengths and weaknesses.

3. What should they do to improve their financial status?

Attachment:- Assignment Files.rar

Reference no: EM131467167

Questions Cloud

Explain the incentive problem : Explain the incentive problem involved if regulators assure that a natural monopoly will be able to cover its cost and earn a reasonable return on their assets.

Segmentation plan : Describe the concept of segmentation and what benefit(s) he might get from having a segmentation plan.

Grim-reaper strategy : Will cooperation always emerge as an outcome, with a grim-reaper strategy? Explain.

Firm plans to begin production of a new small appliance : A firm plans to begin production of a new small appliance. The manager must decide whether to purchase the motors for the appliance from a vendor at $10 each or

Calculate the emergency fund ratio and solvency ratio : FCS320 Family Resource Management Assignment. Calculate the following ratios: Solvency ratio, Current ratio and Emergency fund ratio

Payoff matrix to illustrate the returns : (a) Construct the 3 by 3 payoff matrix to illustrate the returns (in this case, the profits) from choosing the various output combinations.

Identify and eliminate brownfield sites : The US EPA administers a program of grants and loans to help state and local governments identify and eliminate brownfield sites.

Discuss about the two organizations of your choice : Prepare a two-page memo to your instructor discussing the two organizations of your choice. While each web site will contain different information.

Determine the pressure temperature and velocity at the exit : Air flows through a duct with a constant cross-sectional area. The pressure, temperature, and Mach number at the inlet to the duct are 180 kPa, 30°C, and 0.25.

User Account

All Pages