Question

Calculate Mindy's equity in her restaurant:

Mindy owns a restaurant. She has $14,200 in cash, $2,600 in inventory, $5,000 in equipment, a $3,800 credit card balance, and $1,400 in long-term de
Mindy's equity in her restaurant is $ type your answer...

Answer 1

Mindy's equity in her restaurant is calculated by subtracting her total liabilities ($5,200) from her total assets ($21,800), resulting in an equity of $16,600.

Step-by-step explanation:

To calculate Mindy's equity in her restaurant, we need to total her assets and subtract her liabilities. Mindy's total assets include $14,200 in cash, $2,600 in inventory, and $5,000 in equipment, summing up to $21,800. Her liabilities include a $3,800 credit card balance and $1,400 in long-term debt, totaling $5,200.

Applying the formula for equity:

Equity = Total Assets - Total Liabilities

Mindy's equity is therefore calculated as follows:

$21,800 (Total Assets) - $5,200 (Total Liabilities) = $16,600

Hence, Mindy's equity in her restaurant is $16,600.