Final answer:
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.