David Sasaki graduated from college in 1997 and moved to Hawaii to take a job
as a market research analyst. He was pleased to be financially independent and was sure that he could cover living expenses. David%u2019s income is about
$8000 per month after taxes. He prepared and gathered the following financial information for the month ending December 31 1999:
Monthly Expenses:
Groceries expense $390
Clothing expense $225
Mortgage payments $920
Entertainment Expense $360
Medical expense $410
Telephone bills paid $64
Electricity & water expense $200
Car expense $300
Cable TV Expense $50
Auto loan payments $215
Minimum Credit card payment $45
School expense $70
Assets and Liabilities:
1990 Honda Civic $4300
Gateway 2000 computer $1200
Household furnishings $4000
American Express balances $1500
Check account $500
Auto loan balances $2500
Visa card balances $2200
Cash on hand $100
Savings account $200
Mutual fund account $2400
Stocks $4000
Common Stock investment $9800
Mortgage balance outstanding $68000
Market value of home $92000
(1). Construct David%u2019s cash flow statement and balance sheet
(2). Compute current ratio debt ratio and savings ratio.