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Based on the following financial data, calculate the ratios requested. (Enter all answers as decimals. Round your answers to 4 decimal places.) Liabilities $ 8,400 Net worth $ 61,000 Liquid assets $ 5,800 Current liabilities $ 1,450 Monthly credit payments $ 700 Take-home pay $ 2,650 Monthly savings $ 190 Gross income $ 3,000
Based on the following financial data, calculate the ratios requested. (Enter all answers as decimals. Round your answers to 4 decimal places.) Liabilities $ 8,400 Net worth $ 61,000 Liquid assets $ 5,800 Current liabilities $ 1,450 Monthly credit payments $ 700 Take-home pay $ 2,650 Monthly savings $ 190 Gross income $ 3,000
Final answer:This answer provides calculations for the debt ratio, liquidity ratio, debt service ratio, and savings ratio based on the provided financial data.Explanation:The calculations for the requested financial ratios are as follows:Thedebt ratiois calculated by dividing total liabilities by net worth. So, $8,400 divided by $61,000 equals to 0.1377.Theliquidity ratio(also known as the quick or acid-test ratio) is calculated by dividing liquid assets by current liabilities. So, $5,800 / $1,450 equals 4.0000.Thedebt service ratio(DSR) is calculated by dividing monthly credit payments by take-home pay. So, $700 / $2,650 equals 0.2642.Thesavings ratiois calculated by dividing monthly savings by gross income. So, $190 / $3,000 equals 0.0633.Learn more about Financial Ratios here:brainly.com/question/31531442#SPJ1...