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