Question

The Roth family has liquid assets of $10,000, use assets of $150,000 and investment assets of $34,000. They also have liabilities totaling $108,000. If their total liabilities increase by $7,000 over the next year, by how much would the Roth family need to increase their assets in order to have a net worth of $100,000?

Answer 1

Assets=liability+owners equity
(10000+150000+34000)=(108000+7000)+100000
194000=115000+100000
194000=215000
194000+21000=215000
215000=215000
So the answer is 21000