question archive Renée is a 28-year-old occupational therapist living in the Annex district of Toronto
Renée is a 28-year-old occupational therapist living in the Annex district of Toronto
Subject:AccountingPrice: Bought3
Renée is a 28-year-old occupational therapist living in the Annex district of Toronto. She recently graduated from the University of Toronto and now works as an independent contractor assessing the legitimacy of claims made by car accident victims. Like many students, Renée accumulated a large student debt during her years at university and plans to pay it off within the next five years.
Cash Flow Statement For the Year Just Ended
Income
Professional billings$58,805
Less: Professional expenses and taxes (24,190)
Professional income net of expenses and taxes $34,615
Dividends (after taxes) 160
Total Income $34,775
Fixed Expenses
Rent 9,900
Student loan payments 3,200
Total Fixed Expenses $13,100
Variable Expenses
Utilities, personal, food, clothing, and dental $13,085
Moving expenses 255
Credit card interest 1,040
Recreation/entertainment 1,920
Vacations 6,230
Total Variable Expenses $22,530
Total Expenses $35,630
Surplus/(Deficit) ($855)
Personal Balance Sheet as of Today
Assets
Liquid Assets
Bank account$1,570
Personal Possessions$10,580
Investment Assets
BCE Shares$3,325
Total Assets$15,475
Liabilities
Current Liabilities
Credit card balances$8,155
Long-Term Liabilities
Student loan 20,880
Total Liabilities$29,035
Net Worth($13,560)
Using Renée's financial statements, compute the following ratios: (Do not round intermediate calculations. Round your final answers to 2 decimal places.)
Debt to Asset ratio -
Current ratio -
Liquidity ratio months -
