Reference no: EM132566584
Ledio and Isabel Greene have the following assets, liabilities, income, and expenses. Use this information to answer the questions that follow:
Yearly income: $99,000
Value of home: $190,000
Value of cars: $32,000
Monetary Assets: $30,000
Mortgage on house: $150,000 with twenty-four years remaining on the loans
Auto loans: $14,000 with three years remaining on the loans
Student loans: $92,000 with five years remaining on the loans
Mortgage payment: $1,200
Utilities: $500
Car payments: $550
Groceries: $900
Taxes: $3,000
Discretionary expenses: $1,000
Question 1: What is their current net worth situation?
Question 2: What is their current discretionary cash flow position?
Question 3: What is their current ratio?
Question 4: What is their debt ratio?
Question 5: What is their savings ratio (assume that any discretionary cash flow is used for savings)?
Question 6: Ledio and Isabel are considering purchasing a new car. The car will cost $30,000. They plan to borrow the entire amount of the car purchase. By how much will their net worth increase or decrease?