(a)
Case summary: Person CM who got graduated with a degree in food science and is employed with consumer food company and earning 70,000 annually with $58,000 take-home pay. Person CM pays monthly rent of $1,100. The person CM has loan of $38,000 for which she pays $385 monthly. She has current debt of $8000 on which monthly pay is $240 and has assets of $14,000.
Character in the case: Person CM
Adequate information:The person CM has loan of $38,000 for which she pays $385 monthly. She has current debt of $8000 on which monthly pay is $240 and has assets of $14,000. Monthly rent is $1,100. Annual income 70,000 and net income is $58,000. To determine: Debt payment to disposable income ratio.
(b)
Case summary: Person CM who got graduated with a degree in food science and is employed with consumer food company and earning 70,000 annually with $58,000 take-home pay. Person CM pays monthly rent of $1,100. The person CM has loan of $38,000 for which she pays $385 monthly. She has current debt of $8000 on which monthly pay is $240 and has assets of $14,000.
Character in the case: Person CM
Adequate information:The person CM has loan of $38,000 for which she pays $385 monthly. She has current debt of $8000 on which monthly pay is $240 and has assets of $14,000. Monthly rent is $1,100. Annual income 70,000 and net income is $58,000. To determine: Debt to total income ratio.
(c)
Case summary: Person CM who got graduated with a degree in food science and is employed with consumer food company and earning 70,000 annually with $58,000 take-home pay. Person CM pays monthly rent of $1,100. The person CM has loan of $38,000 for which she pays $385 monthly. She has current debt of $8000 on which monthly pay is $240 and has assets of $14,000.
Character in the case: Person CM
Adequate information:The person CM has loan of $38,000 for which she pays $385 monthly. She has current debt of $8000 on which monthly pay is $240 and has assets of $14,000. Monthly rent is $1,100. Annual income 70,000 and net income is $58,000. To discuss: the Person CM’s debt situation along with her debt usage during college times.
Want to see the full answer?
Check out a sample textbook solution
Chapter 6 Solutions
PERSONAL FINANCE,TAX UPDATE (LL)
- What is working capital?* Equity Capital + Retained Earnings Equity Capital - Total Liabilities Total Assets - Total Liabilities Current Assets - Current Liabilitiesarrow_forwardWhich of the following is not a financing activity?* Repayment of long-term debt Issuance of equity Investments in businesses Payment of dividendsarrow_forwardThe correct order of capital stack from the most to least secured is* Equity > Subordinated debt > Senior debt Suborindated debt > Senior debt > Equity Senior debt > Subordinated debt > Equity Senior debt > Equity > Subordinated debtarrow_forward
- 16. ____ underwriting commitment is when the underwriter agrees to buy the entire issue and assume full financial responsibility for any unsold shares.* Best efforts Firm commitment All-or-none Full-purchasearrow_forwardWhich of the following is not true about private equity funds?* Private equity funds are pools of capital invested in companies which represent an opportunity for high rate of return Exit strategies for private equity funds include Initial Public Offerings (IPOs) and leveraged buyout (LBO) Venture capital is an example of private equity funds Private equity funds are usually invested for unlimited time periodsarrow_forwardWhat is finance ? explain about its parts.arrow_forward
Individual Income TaxesAccountingISBN:9780357109731Author:HoffmanPublisher:CENGAGE LEARNING - CONSIGNMENT