Given the Following Information, Calculate the Savings Ratio: Liabilities =

question 42

Multiple Choice

Given the following information, calculate the savings ratio: Liabilities = $25,000
Liquid assets = $5,000
Monthly credit payments = $800
Monthly savings = $760
Net worth = $75,000
Current liabilities = $2,000
Take-home pay = $2,300
Gross income = $3,500
Monthly expenses = $2,050

• A) 33.79%
• B) 3.06%
• C) 2.40%
• D) 34.78%
• E) 21.71%

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Definitions:

COGS

Short for Cost of Goods Sold, it represents the direct costs attributable to the production of the goods sold by a company.

Factoring Costs

Expenses associated with selling accounts receivable to a third party, commonly referred to as a factor, to improve cash flow.

Accounts Receivable

Accounts receivable refers to the money owed to a company by its customers or clients for goods or services delivered but not yet paid for.

Credit Sales

Sales where payment is not made immediately by the buyer, but under terms and conditions agreed upon by the seller and the buyer.