Reference no: EM132877742
Question - Tim and Autumn Davis are trying to figure out their current financial health. They will pay off their car loan in three years, their gross household income is $5,700 per month, and they receive $95 per month in interest income from their investments. They have listed the following items from their most recent statements.
Savings account: $3,200
Checking account: $1,800
Credit card balance: $3,000
Car loan balance: $18,000
Car market value: $15,000
Furniture market value: $4,000
Stocks and bonds: $15,000
1) What is their current net worth?
A) $21,000
B) $39,000
C) $18,000
D) $(21,000)
2) Assuming that they have no current bills other than those that are listed, what is their current ratio?
A) 0.79 times
B) $5,000/$3,000
C) 2 times
D) Not enough information available
3) What is their debt ratio?
A) 123 percent
B) 3 times
C) 1.23 times
D) 0.54 percent
4) What is their month's living expenses covered ratio?
A) 2 months
B) 1.23 months
C) 1.75 months
D) Not enough information to answer this question