Assume the following annual financial information for Kelli (age 30):
Income (after tax...
Business, 05.05.2020 00:35 jairopanda8
Assume the following annual financial information for Kelli (age 30):
Income (after taxes) : $80,000
Savings : $2,500
Rent: $18,000
Dry Cleaning $200
Entertainment $2,000
Utilities $1,800
Car Payment $6,600
Auto Insurance $2,400
Student Loans $6,000
Credit Cards $1,200
Utilizing targeted benchmarks, which of the following statements is FALSE regarding Kelli’s financial situation?
a. Kelli's Housing Ratio 1 is adequate.
b. Kelli's emergency fund is adequate.
c. Kelli's Housing Ratio 2 is deficient.
d. Kelli's current ratio is less than 1
Utilizing investment assets to gross pay benchmarks, which of the following individuals is likely on target with their investment assets?
a. Jery age 55 earns $120,000 a year and has invested assets of $450,000.
b. Liam age 25 earns $45,000 a year and has invested assets of $5,500.
c. Sarah age 35 earns $90,000 a year and has invested assets of $325,000.
d. Alex age 45 earns $110,000 a year and has invested assets of $170,000.
Use the following financial information for Jay (age 30) and Maria (age 30) Handberger:
a. Cash and Cash Equivalents: $75,000
b. Investment Assets: $220,000
c. Personal Use Assets: $350,000
d. Current Liabilities: $45,000
e. Long-Term iabilities: $300,000
Before your next meeting with the Handberger's, you create a pie chart to visually depict their current balance sheet. Utilizing targeted benchmarks, which of the following statements are you most likely to make during your next meetang?
a. "Your investment assets make up 34% of your asset pie chart, which is too low for your age group.
b. "Given your assets and liabilities, your net worth is appropriate for your age group.
c. "Relative to the rest of your assets, your cash and cash equivalents are too low for your age group.
d. "Compared to your net worth and current liabilities, your long-term liabilities are excessive for your age group.
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