"A retailer has these financial results: current assets, $500,000; fixed assets, $1,000,000; current liabilities, $520,000; fixed...

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"A retailer has these financial results: current assets, $500,000; fixed assets, $1,000,000; current liabilities, $520,000; fixed...

"A retailer has these financial results: current assets, $500,000; fixed assets, $1,000,000; current liabilities, $520,000; fixed liabilities, $920,000; net sales, $8,000,000; and net profit, $120,000. What is its net worth?"

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Answer 1

Answer #1

Net worth is calculated as follow = Total assets - Total liabilities

Total assest= Fixed asset + current assest

= $ 1000,000 +$ 500,000

= $ 1500000

Total liabilities = Fixed liabilities + Current Liabilities

= $ 920,000 +$ 520,000

= $ 14,40000

Net worth = $ 1500000 - $ 1440000

= $ 60000

net worth is measurement of our financial position .it tells about how much amount is invested in business.

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Answer 2

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