Do the Math 3-3 Ratio Analyses Use the following balance sheet and cash flow statement information to answer the questions below. Liquid assets: $14,000; home value: $210,000; monthly mortgage payment: $1,450; investment assets: $75,000; personal property: $20,000; total assets: $319,000; short-term debt: $4,200 ($350 a month); long-term debt: $160,000 ($2,200 a month); total debt: $164,200; monthly gross income: $13,000; monthly disposable income: $6,800; monthly expenses: $5,500. Calculate the ratios below. Round your answers to two decimal places. Liquidity ratio. Asset-to-debt ratio. Debt-to-income ratio. % Debt payments-to-disposable income ratio. % Investment assets-to-total assets ratio. %

Liquidity Ratio = 3.33

Asset to Debt ratio = 1.94

Debt to Income ratio = 95.57%

Debt Payments to disposable income = 36.76%

Investment assets to total assets = 23.51%

Explanation:

Liquidity Ratio = [ Liquid Assets ] : [ Short Term Debt ]

= $14,000 : $4,200

= 3.33

Asset to Debt ratio = [ Total Assets ] : [ Total debt ]

= $319,000 : $164,200

= 1.94

Debt to Income ratio = [ Total Debt ] : [ (Gross Income + Disposable income - expenses) ]

= $164,000 : [ ($13,000 + $6800 - $5500) * 12 ]

= 0.9557 or 0.9557 * 100% = 95.57%

Debt Payments to disposable income

= [ Long term debt payment + short term debt payment ] : [ Disposable income ]

= [ $2,200 + $300 ] : $6,800

= 0.3676 = 36.76%

Investment assets to total assets

= $75,000 : $319,000

= 0.2351 = 23.51%