Question

Amanda is the owner of a flooring company. Her assets include $15,000 in cash, $10,000 in inventory, and $5,000 in equipment. Her liabilities include a $6,000 credit card balance and $800 in long-term debt. What is Amanda's equity?

o o o o
$23,400
$23,200
$36,800
$20,400

Answer 1

Assets = $15,000 + $10,000 + $5,000 = $30,000
Liabilities = $6,000 + $800 = $6,800
Equity = Assets − Liabilities = $30,000 − $6,800 = $23,200

Answer: $23,200