Question

Skye listed her assets and liabilities on a personal balance sheet.

Skye’s Balance Sheet (April 2013)
Assets
Liabilities
cash
$1,000
credit card
$4,000
investments
$1,000
student loan
$1,000
house
$200,000
mortgage
$100,000
car
$8,000
car loan
$5,000
Total
???
Total
???
Net Worth: ???

What is Skye’s net worth?
$100,000
$110,000
$210,000

Answer 1

Total assets = 1,000 + 1,000 + 200,000 + 8,000 = 210,000
Total liabilities = 4,000 + 1,000 + 100,000 + 5,000 = 110,000
Net worth = 210,000 − 110,000 = $100,000

Answer: $100,000