Do the Math 3-2 Calculating Net Worth and Net Surplus Jennifer Pontesso, from Li

Question

Do the Math 3-2 Calculating Net Worth and Net Surplus Jennifer Pontesso, from Lincoln, Nebraska, wants to better understand her financial situation. Use the following balance sheet and cash flow statement information to determine her net worth and her net surplus for a recent month. Liquid assets: $9,000; home value: $230,000; monthly mortgage payment: $1,450 on $150,000 mortgage; investment assets: $80,000; personal property: $16,000; total assets: $335,000; short-term debt: $3,360 ($280 a month); total debt: $153,360; monthly gross income: $14,000; monthly disposable income: $6,000; monthly expenses: $5,000. Round your answers to the nearest dollar.

Net worth: $

Net surplus: $

Explanation / Answer

It is given that total assets are $335,000, which consists of Liquid assets worth $9,000; Home Value $230,000; Investment assets $80,000 and Personal Property worth $16,000. Total Liabilities or Total debt equals $153,360 which includes short term debt of $3,360 and Mortgage of $150,000.

Net worth = $181,640 ( $335,000 - $153,360 )

Net surplus = $6,000 - $5,000 = $1,000

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