Data:

 You now have Steve and Mary Jo’s balance sheet and income statements prepared.

 

Balance Sheet
Assets
	Primary Residence	$150,000
	Monetary Assets	$5,000
	Automobiles	$20,000
	Furniture	$10,000
Total Assets		$185,000
Liabilities
	Current Bills	$1,150
	First Mortgage	$100,000
	College Loan	$10,000
	Automobiles (2 x $10,000)	$20,000
Total Liabilities		$131,150
Net Worth (Assets–Liabilities)		$53,850
Income Statement
Annual Income
	Wages	$50,000
	Taxes (15%)	$7,500
	Paying the Lord (12%)	$6,000
	Paying yourself (10%)	$5,000
	Total Income	$31,500
Expenses
	Mortgage	$7,730
	Utilities, Taxes	$2,270
	Food	$6,000
	Insurance	$1,500
	College Loan	$1,160
	Car Payment	$7,410
	Other Expenses	$5,430
	Total Expenses	$31,500

Calculations:

       Calculate each of the six key liquidity, debt, and savings ratios.

Application:

 Using the data and calculations, comment on how well they are doing. What can and should they be doing to improve?