Question

Question 2 (5 points) Based on the following data, determine the amount of total assets, total liabilities, and net worth. Liquid assets, $3,200 Investment assets, $7,340 Current liabilities, $1,670 Household assets, $97,890 Long-term liabilities, $70,230

Answer 1

Answer and Explanation:

The computation of the total assets, total liabilities and the net worth is shown below:

Total assets = liquid assets + investment asset + household assets

= $3,200 + $7,340 + $97,890

= $108,430

The total liabilities is

= Current liabilities + long term liabilities

= $1,670 + $70,230

= $71,900

So, the net worth is

= Total assets - total liabilities

= $108,430 - $71,900

= $36,530