Question

Patricia McDonald has determined that the value of her liquid assets is $4,500, the value of her real estate is $148,000, the value of her personal possessions is $62,000, and the value of her investment assets is $73,000. She has also determined the value of her current liabilities is $7,500 and the value of her long term liabilities is $98,000. What is Patricia's net worth?

Answer 1

Answer:

$182,000

Explanation:

Total assets:

= Value of her liquid assets + Real estate + Personal possessions + Investment assets

= $4,500 + $148,000 + $62,000 + $73,000

= $287,500

Total liabilities:

= Current liabilities + Long term liabilities

= $7,500 + $98,000

= $105,500

Net worth:

= Total assets - Total liabilities

= $287,500 - $105,500

= $182,000