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The assets and liabilities of a landscaping business are listed below.

What is the net worth of the landscaping company?
A) $126,790
B) $187,205
C) $282,799
D) $470,004

The assets and liabilities of a landscaping business are listed below. What is the-example-1

1 Answer

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The net worth of the landscaping company is given by:

$187.205.

How to calculate the net worth?

The net worth of a company or of a person is given by the sum of all assets of the person subtracted by the sum of all debts of the person.

In the context of this problem, the assets, and it's values, of the company are given as follows:

Owned Inventory: $48,760.

Cash: $126,790.

Savings account: $32,436.

Owned equipment: $20,700.

Accounts receivable: $15,640.

Property value: $225,678.

Hence the sum of the assets is given by:

Assets = 48760 + 126790 + 32426 + 20700 + 15640 + 225678 = $469,994.

The debts of the company, with it's values, are given as follows:

Small Business Loan: $76,400.

Building Mortgage: $189,429.

Other debt: $16,970.

Hence the sum of the debts is given by:

Debts = 76400 + 189429 + 16970 = $282,799.

Then the net worth of the company is:

Net worth = Assets - Debt = 469,994 - 282,799 = $187,205.

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