Question

Patricia McDonald has determined that the value of her liquid assets is $4,200, the value of her real estate is $134,000, the value of her personal possessions is $55,000, and the value of her investment assets is $72,000. She has also determined the value of her current liabilities is $6,800 and the value of her long-term liabilities is $89,000. What is Patricia's net worth?

Answer 1

Answer:

$169,400

Explanation:

As we know that

Net worth = Total assets - total liabilities

where,

Total assets = Value of her liquid assets + value of her real estates + value of her potential possession + value of her investment asset

= $4,200 + $134,000 + $55,000 + $72,000

= $265,200

And, the total liabilities is

= Her Current liabilities + Value of her long term liabilities

= $6,800 + $89,000

= $95,800

So, the net worth is

= $265,200 - $95,800

= $169,400