Question

Find the sum. −120+(−235)+(−60)+(−35) (−45)+(−70)+(−15)+(−30) Tyler deposited $300 into his bank account. He then wrote a check for $150. Which of the following represents the changes in the value of Tyler’s account?

A) 300−150
B) 300+150
C) 150−300

Answer 1

To determine the net worth of a bank, one must subtract the bank's liabilities from its assets. In this case, the bank's assets are $620 and its liabilities are $400, resulting in a net worth of $220.

Step-by-step explanation:

To set up a T-account balance sheet for the bank with the given figures and to calculate the bank's net worth, we need to list the bank's assets and liabilities. Assets include the reserves and any investments, such as government bonds and loans made to customers. Liabilities are primarily the deposits held by the bank. The net worth (also known as shareholders' equity) is calculated by subtracting the liabilities from the assets.

• Reserves: $50
• Government Bonds: $70
• Loans: $500

• Deposits: $400

The assets total $620 ($50 reserves + $70 government bonds + $500 loans). The total liabilities are $400 (deposits). Thus, the net worth of the bank is calculated as assets minus liabilities, which equals $220.

Balance Sheet:

Assets Liabilities Reserves: $50

Deposits: $400

Government Bonds: $70

Loans: $500

Total Assets: $620

Total Liabilities: $400

Net Worth: $220