Question

Patricia McDonald has determined that the value of her liquid assets is $4,600, the value of her real estate is $134,000, the value of her personal possessions is $58,000, and the value of her investment assets is $74,000. She has also determined the value of her current liabilities is $6,700 and the value of her long-term liabilities is $94,000.
1. What is Patricia's net worth?

Answer 1

Answer:

Net worth = $169,900

Explanation:

Patricia's net worth is the difference between her assets and liabilities. It is an important measure to guage the financial health of an individual or business.

Total assets= 4,600+ 134,000+ 58,000+ 74,000

Total assets= $270,600

Total liabilities= 6,700+ 94,000

Total liabilities= $100,700

Therefore Net worth= 270,600- 100,700

Net worth = $169,900