Final answer:
To calculate the net worth of the landscaping business, we list the assets including inventory, cash, savings, equipment, receivables, and investments and the liabilities including the mortgage, loan, and credit card debts. The total assets amount to $340,075 and the total liabilities to $191,367. By subtracting liabilities from assets, we find that the net worth of the business is $148,708.
Step-by-step explanation:
To create the balance sheet for the landscaping business with the provided assets and liabilities, we will organize them into two sections and calculate the net worth. The assets section will include the owned inventory, cash, savings account, owned equipment, accounts receivable, and investments. The liabilities section will include the building mortgage, small business loan, and credit cards.
Landscaping Business Balance Sheet-
Assets:
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- Owned Inventory: $30,500
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- Cash: $75,420
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- Savings Account: $28,000
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- Owned Equipment: $15,670
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- Accounts Receivable: $11,560
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- Investments: $178,925
Liabilities:
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- Building Mortgage: $154,265
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- Small Business Loan: $25,652
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- Credit Cards: $11,450
To calculate the net worth, subtract the total liabilities from the total assets:
Total Assets = $30,500 + $75,420 + $28,000 + $15,670 + $11,560 + $178,925 = $340,075
Total Liabilities = $154,265 + $25,652 + $11,450 = $191,367
Net Worth = Total Assets - Total Liabilities = $340,075 - $191,367 = $148,708