Bus 2 Quiz 2 Studnets copy (1)

1- Which of the following situations describes a person who could be insolvent? A. Assets $56,300; annual expenses $61,200 B. Assets $78,300; net worth $23,200 C. Liabilities $45,300; net worth $7,200 D. Assets $40,300; liabilities $46,200 E. Annual cash inflows $45,300; liabilities $51,200 2- Given the following information, calculate the liquidity ratio: (Round your answer to 2 decimal places.) Liabilities = $42,500 Liquid assets = $8,500 Monthly credit payments = $1,700 Monthly savings = $1,300 Net worth = $99,500 Current liabilities = $3,400 Take-home pay = $4,100 Gross income = $8,900 Monthly expenses = $5,640 A. 42.71 B. 2.50 C. 1.51 D. 41.46 E. 14.61 3- Given the following information, calculate the net worth: Assets = $6,600 Cash inflows = $6,200 Cash outflows = $3,600 Liabilities = $2,700 A. $400 B. $900 C. $2,600 D. $2,700 E. $3,900 4- Given the following information, calculate the savings ratio: (Round your answer to 2 decimal places.) Liabilities = $30,500 Liquid assets = $6,100 Monthly credit payments = $1,100 Monthly savings = $640 Net worth = $81,500 Current liabilities = $2,200 Take-home pay = $2,900 Gross income = $5,300 Monthly expenses = $3,240

37.42% 2.77% 1.88% 37.93% 12.08% 5- Given the following information, calculate the debt ratio percentage: (Round your answer to 2 decimal places.) Liabilities = $33,500 Liquid assets = $6,700 Monthly credit payments = $1,250 Monthly savings = $1,030 Net worth = $86,000 Take-home pay = $3,200 Gross income = $6,200 Monthly expenses = $3,840 A. 38.95% B. 2.68% C. 1.74% D. 39.06% E. 16.61% 6- Which of the following situations describes a person who could be insolvent? A. Assets $56,300; annual expenses $60,700 B. Assets $78,300; net worth $22,700 C. Liabilities $45,300; net worth $6,700 D. Assets $40,300; liabilities $45,700 E. Annual cash inflows $45,300; liabilities $50,700 F. Insolvency occurs when liabilities, $45,700, far exceed assets, $40,300. 7- Given the following information, calculate the debt ratio percentage: (Round your answer to 2 decimal places.) Liabilities = $44,500 Liquid assets = $8,900 Monthly credit payments = $1,800 Monthly savings = $1,360 Net worth = $102,500 Take-home pay = $4,300 Gross income = $9,500 Monthly expenses = $6,040 A. 43.41% B. 2.47% C. 1.47% D. 41.86% E. 14.32%