Question

Mike's personal balance sheet. Mike just got paid and has $2500 in his checking account. He also has $1500 in his savings account. He owns a condo which if he decides to sell it should go for $125.000. He did numbers and has $2000 in furniture, his car worth $5000, and another $2000 in electronics. He has been investing in his company stock and has $1,000 and his retirement account has 10,000. all his bills and debt are as follows. His medical bills are $1000, his Credit card balance is $3500, His condo has a balance of $105,000, and his car has $3500. You will need to classify his assets and liabilities to determine his net worth

Answer 1

Assets:

- Checking account: $2,500

- Savings account: $1,500

- Condo: $125,000

- Furniture: $2,000

- Car: $5,000

- Electronics: $2,000

- Company stock: $1,000

- Retirement account: $10,000

Total assets: $149,000

Liabilities:

- Medical bills: $1,000

- Credit card balance: $3,500

- Condo balance: $105,000

- Car balance: $3,500

Total liabilities: $113,000

Net worth: Assets - Liabilities = $149,000 - $113,000 = $36,000.

Mike's net worth is $36,000.