Question

During an interview with Heidi Royce, she confessed to accepting $64,500 in kickbacks from a key supplier over the last 6 months. Heidi's income for the year was $48,000 and her living expenses totaled $94,500 due mainly to medical costs of $40,000. She has a current net worth of $20,000. What was her (increase/decrease) in net worth

Answer 1

Answer: the net increase in net worth is $2,000

Explanation:

Formulas to apply

1.- Assets - liabilities = Net worth    

2 - Net worth- Prior net worth= Net worth increase

The goal is to obtain the increase in the current net worth

$64,500 + $48,000= $112,500 assets

$112,500 (assets) -94,500(liabilities) = $18,000 (net worth)

$20,000 (Current net worth)- $18,000(prior net worth) =  the increase is $ 2,000