Financial Checkup Assignment Example | Topics and Well Written Essays - 750 words

Financial Checkup - Assignment Example The figures clearly indicate that I am credit worth as my assets are capable of covering my credit. In addition, it shows that I understand how to manage my debts as I keep the levels of debts below what I really own (Assets).The figures can be helpful when seeking short term credit to handle my short term needs (Eisenberg 69). According to my income and expense statements, the total expense is $2750 while my income is $900.The total loss is $1840.From this figures, my total expense exceed the total income resulting in a loss. This may be attributed to the fact that being a student, there is little time to engage in income generating activities but there is extensive spending due to a number of requirements in the learning institution and my personal needs. However, my income of 900 dollars show that I am capable of managing my time and engage in part time income generating activities , which clearly indicate that I can utilize time as a major resource in making substantive income(Eisenberg 62). My liquidity ratio is 2.92,which is below the recommended ratio of 3.The ratio shows that my liquid assets cannot meet my current expenses by a difference of 0.8.This can be attributed to the fact that as a student, I am bound to spent more than what I hold as liquid assets. However, the figure is comparatively positive compared to other students as it shows that I can meet most of my current expenses using my own cash and cash equivalents. Further, the figure is not alarming as I can still manage to get external source of cash such as pocket money from parents to cover the current expenses that I may be unable to meet on my own (Eisenberg 33).The debt asset ratio is 0.72.This figure is below 1, which clearly indicates that my assets exceed my debts and so I can pay my debts. Further, the figure shows that I am credit worth when borrowing or applying for a loan. My monthly average amount for revolving savings is$417.This average budgeted amount for every moth show