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

Question

Business

Allison Fritz

13 December, 19:27

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

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Tanya Briggs · 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