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Unformatted text preview: HACE 3200 CHAPTER 2 PRACTICE PROBLEMS: RATIOS 1. John and Kate sat down and did their balance sheet. They find that they have: $1,700 in savings; 2 cars worth $10,400 each; $8,000 in checking; $25,000 in their trust fund; $3,000 in cash; and $18,000 in stocks. They owe $1,500 for Kates tummy tuck (the bill is due 10/12/10); they owe $2,500 for Johns hair implants (the bill is due next month); and they owe $4,500 to their security guards (they want paid now!). Calculate John and Kates current ratio . 2. Debbie and Todd have an annual income of $370,000. They live in a 5-bedroom house that has 8000 square feet. Their 2 children are ages 3 and 8. Together they own 4 vehicles. They have monetary assets of $160,000, and investment assets of $260,000. Liabilities include $350,000 for their house, and $44,150 for personal loans. Calculate Debbie and Todds debt ratio . 3. Harry Potter has $25,000 in monetary assets and $13,000 in current liabilities. He has income available for savings of $8,000 and his income available for living expenses is $20,000. Harry's current ratio is: 4.4....
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- Spring '09