Question

9.Given the following information, calculate the debt ratio percentage: (Round your answer to 2 decimal places.)

Liabilities = $28,500

Liquid assets = $5,700

Monthly credit payments = $1,000

Monthly savings = $880

Net worth = $78,500

Take-home pay = $2,700

Gross income = $4,700

Monthly expenses = $2,840

a 2.01%

b 2.85%

c 36.31%

d 18.72%

e 37.04%

10.Rebecca Wilson’s monthly budget had planned spending of $379 for a new wardrobe in June. She actually spent $414. What is her budget variance?

a $793 Deficit

b $414 Deficit

c $379 Surplus

d $35 Surplus

e $35 Deficit

Answer 1

Answer 9
Debt ratio = Total Liabilities / Net worth
Debt ratio = $28500 / $78500 = 36.31%
The answer is Option c.
Answer 10
Budget Variance = Planned spending - Actual Spending
Budget Variance = $379 - $414 = $35 Deficit
The answer is Option e.