How to calculate liabilities when net worth and assets are given

Answer 1

To calculate liabilities when net worth and assets are given, you can use the equation:

Liabilities = Assets - Net Worth

Where "Assets" represent the total value of all the assets, and "Net Worth" is the difference between assets and liabilities (i.e., the owner's equity). By rearranging the equation, you can find the liabilities:

Liabilities = Assets - Net Worth

For example, if the total assets are $500,000 and the net worth is $300,000:

Liabilities = $500,000 - $300,000
Liabilities = $200,000

Therefore, the liabilities in this scenario would amount to $200,000.