David Sasaki graduated from college in 1997 and moved to Hawaii to take a job

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.