Question

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 debt

Answer 1

Mindy's net worth: $16,600 (Cash + Inventory + Equipment - Credit Card - Long-Term Debt)

To calculate Mindy's net worth:

Sum her assets: $14,200 cash + $2,600 inventory + $5,000 equipment = $21,800

Sum her liabilities: $3,800 credit card balance + $1,400 long-term debt = $5,200

Subtract liabilities from assets: $21,800 assets - $5,200 liabilities = $16,600 net worth

Therefore, Mindy's net worth is $16,600.

To calculate Mindy's working capital:

• Identify current assets: This would likely include cash, inventory, and any accounts receivable (if not already included in "cash").
• Identify current liabilities: This would include credit card balance, accounts payable, and any short-term loans.
• Subtract current liabilities from current assets: Working capital = Current assets - Current liabilities

However, we don't have information about accounts receivable or accounts payable in this case. If you can provide those figures, I can calculate Mindy's working capital for you.