(Part A) If the average spending of Tobias and Antonia is $61,200 per year, (1) compute their liquidity ratio and (2) explain if their liquidity ratio is in appropriate range. Round to two decimal places of percentage (e.g., 11.11%) (Part B) How much interest could be saved annually if Tobias and Antonia can convert credit card debt to investment loan? They can get investment loan at 6% interest. The table below is Tobias and Antonia's balance sheet as of December 31, 2021.AssetsLiabilities$6,000 Credit card balancesAmerican Express Card(22% interest)Master Card (20%)Checking accountSavings account$3,000$6,500$8,000$13,000$150,000$400,000Cash$500$780,000 Car loan$15,000 Loan from Antonia's mother$5,000 Mortgage$8,000$1,500$6,500$15,000$835,300 Total liabilitiesMarket value of homeMarket value of car (Honda)FurnitureComputer & electronicsJewelryRRSPMutual fundsTotal assets$563,000Net Worth$272,300

Liquidity Ratio For Calculating the Liquidity Ratio to evaluate the total of liquid assets which are…

Answered: Part A) If the average spending of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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(Part A) If the average spending of Tobias and Antonia is $61,200 per year, (1) compute their liquidity ratio and (2) explain if their liquidity ratio is in appropriate range. Round to two decimal places of percentage (e.g., 11.11%) (Part B) How much interest could be saved annually if Tobias and Antonia can convert credit card debt to investment loan? They can get investment loan at 6% interest.

The table below is Tobias and Antonia's balance sheet as of December 31, 2021.
Assets
Liabilities
$6,000 Credit card balances
American Express Card
(22% interest)
Master Card (20%)
Checking account
Savings account
$3,000
$6,500
$8,000
$13,000
$150,000
$400,000
Cash
$500
$780,000 Car loan
$15,000 Loan from Antonia's mother
$5,000 Mortgage
$8,000
$1,500
$6,500
$15,000
$835,300 Total liabilities
Market value of home
Market value of car (Honda)
Furniture
Computer & electronics
Jewelry
RRSP
Mutual funds
Total assets
$563,000
Net Worth
$272,300

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