Question

Ella McDonald has determined that the value of her liquid assets is 4,400, the value of her real estate is134,000, the value of her personal possessions is 62,000, and the value of her investment assets is71,000. She has also determined the value of her current liabilities is 6,800 and the value of her long-term liabilities is88,000. What is Ella's net worth?

Answer 1

Ella McDonald's net worth is calculated by subtracting her total liabilities from her total assets. Her assets add up to $271,400, and her liabilities are $94,800, resulting in a net worth of $176,600.

Step-by-step explanation:

To calculate Ella McDonald's net worth, we need to sum up all her assets and then subtract her liabilities.

Her total assets are calculated as follows:

• Liquid assets: $4,400
• Real estate: $134,000
• Personal possessions: $62,000
• Investment assets: $71,000

Total assets = $4,400 (Liquid) + $134,000 (Real Estate) + $62,000 (Personal) + $71,000 (Investment)

Total assets = $271,400

Her total liabilities are as follows:

• Current liabilities: $6,800
• Long-term liabilities: $88,000

Total liabilities = $6,800 (Current) + $88,000 (Long-term)

Total liabilities = $94,800

Now, to find her net worth:

Net Worth = Total Assets - Total Liabilities

Net Worth = $271,400 - $94,800

Net Worth = $176,600

Therefore, Ella's net worth is $176,600.