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MindTap for Garman/Forgue's Personal Finance Tax Update, 13th Edition [Instant Access], 2 terms
13th Edition
ISBN: 9780357438909
Author: Garman; E. Thomas; Forgue; Raymond
Publisher: Cengage Learning US
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Textbook Question
Chapter 3, Problem 3DTM
Ratio Analyses. Now that Jennifer better understands her situation she wants to do some analysis of what she has found. Given her balance sheet and cash-flow statements calculate the following ratios:
- Liquidity ratio
- Asset-to-debt ratio
- Debt-to-income ratio
- Debt payments-to-disposable income ratio
- Investment assets-to-total assets ratio
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CHAPTER 2 ASSIGNMENT
Your client is having trouble figuring out where all her money goes each month. Here is her financial information for you to review:
$355*
STOCKS IN BROKERAGE ACCT
$5,500
MASTER CARD BILL
$245*
MONTHLY PAYCHECK (GROSS) $3,000
PAYROLL TAX WITHHELD
$ 600
MONTHLY MORTGAGE PAYMENT $530
MUTUAL FUNDS
$2,100
401(K) RETIREMENT ACCT
$4,500
$265
$275*
SAVINGS ACCT BALANCE
$2,300
MONTHLY CLOTHING EXPENSES $45
MONTHLY VISA BILL
MONTHLY CAR PAYMENT
MONTHLY UTILITY BILL
CHECKING ACCOUNT BALANCE
QUARTERLY AUTO INSURANCE (NOT YET DUE)
ANTIQUE COIN COLLECTION
CONDOMINIUM
MONTHLY GROCERIES
AUTOMOBILE
FURNITURE
MORTGAGE BALANCE
AUTO LOAN BALANCE
OTHER PERSONAL PROPERTY
OTHER MONTHLY CASH EXPENSES
ANNUAL MEDICAL EXPENSES
*Bills represent the average of the prior month's charges AND ALSO current month's expenses.
$825
$450
$3,250
$65,000
$225
$9,000
$5,500
$50,000
$4,225
$8,000
$150
$264
Using balance sheet information, the ____ ratio indicates your ability to meet current debt payments.
Group of answer choices
savings
liquidity
cash
debt service
solvency
Which of the following ratios would a lender find most useful in monitoring a
borrower's ability to make loan payments?
() PE ratio
Return on assets
Total asset turnover
Inventory turnover
() Cash coverage ratio
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Chapter 3 Solutions
MindTap for Garman/Forgue's Personal Finance Tax Update, 13th Edition [Instant Access], 2 terms
Ch. 3.1 - Prob. 1CCCh. 3.1 - What is the biggest financial worry of most...Ch. 3.1 - Prob. 3CCCh. 3.1 - Prob. 4CCCh. 3.2 - Prob. 1CCCh. 3.2 - Prob. 2CCCh. 3.2 - Prob. 3CCCh. 3.2 - Prob. 4CCCh. 3.2 - Which two financial ratios for evaluating...Ch. 3.3 - Prob. 1CC
Ch. 3.3 - Prob. 2CCCh. 3.4 - Prob. 1CCCh. 3.4 - Identify two money topics that you think might...Ch. 3.5 - Prob. 1CCCh. 3.5 - What are budget estimates? Offer some suggestions...Ch. 3.5 - How might one go about revising budget estimates...Ch. 3.5 - Prob. 4CCCh. 3.5 - Name different ways to handle budget variances.Ch. 3 - Prob. 1DTMCh. 3 - Calculating Net Worth and Net Surplus. Jennifer...Ch. 3 - Ratio Analyses. Now that Jennifer better...Ch. 3 - Prob. 4DTMCh. 3 - Prob. 5DTMCh. 3 - Prob. 6DTMCh. 3 - Prob. 1FPCCh. 3 - Prob. 2FPCCh. 3 - Prob. 3FPCCh. 3 - Prob. 4FPCCh. 3 - Prob. 5FPCCh. 3 - Prob. 1BYOPFMCh. 3 - Prob. 4BYOPFMCh. 3 - Prob. 5BYOPFMCh. 3 - Prob. 7BYOPFMCh. 3 - Prob. 10BYOPFMCh. 3 - Prob. 11BYOPFM
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