Mandy and Jeff have a net worth of $25,000 and total assets of $140,000. If their revolving credit and unpaid bills total $2,200, what are their total liabilities

Question

Business

Janet Lynn

2 September, 22:05

Mandy and Jeff have a net worth of $25,000 and total assets of $140,000. If their revolving credit and unpaid bills total $2,200, what are their total liabilities

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Answers (1)

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Chloe Olson · Answer 1

A. $115,000

Explanation:

Given that

Total asset = 140,000

Net worth = 25000

Recall that

Net worth = Total asset - total liabilities

Therefore,

Total liabilities = Total asset - Networth

Thus,

Total liabilities = 140000 - 25000

= $ 115,000

Therefore, total liabilities = $115,000

Note that, total liabilities is the total debt and financial obligations owed by a business to individuals or organizations during a specific period of time. The 2,200 is not useful in calculating because it's already accounted for in the 115,000.