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Homework answers / question archive / John Paradis was performing a year-end review of his finances and came up with this list
John Paradis was performing a year-end review of his finances and came up with this list.
Cash $13,200
Furniture 1,900
Automobile 21,900
House 210,000
Credit Card 4,600
Student Loan 11,400
Mortgage 100,000
Required :
a) Calculate John's total assets.
b) Calculate John's total liabilities.
c) Calculate John's net worth.
-a) Computation of the total assets:-
Total assets = Cash + Furniture + Automobile + House
= $13,200 + $1,900 + $21,900 + $210,000
= $247,000
b) Computation of the total liabilities:-
Total liabilities = Credit card + Student loan + Mortgage
= $4,600 + $11,400 + $100,000
= $116,000
c) Computation of the net worth:-
Net worth = Total assets - Total liabilities
= $247,000 - $116,000
= $131,000
