To determine the net worth of the smoothie shop, we need to follow these steps:
1. Identify all assets:
- Owned Inventory: \[tex]$42,970
- Cash: \$[/tex]229,682
- Savings Account: \[tex]$135,327
- Owned Equipment: \$[/tex]34,823
- Accounts Receivable: \[tex]$52,495
- Property Value: \$[/tex]25,789
2. Identify all liabilities before the increase:
- Long Term Liabilities: \[tex]$56,000
- Building Mortgage: \$[/tex]110,650
- Small Business Loan: \[tex]$186,987
3. Adjust the small business loan:
- The owner needs to add \$[/tex]25,000 to the small business loan to cover unexpected equipment repairs.
- New Small Business Loan amount: \[tex]$186,987 + \$[/tex]25,000 = \[tex]$211,987
4. Calculate total assets:
\[
\text{Total Assets} = 42,970 + 229,682 + 135,327 + 34,823 + 52,495 + 25,789 = \$[/tex]521,086
\]
5. Calculate total liabilities:
[tex]\[
\text{Total Liabilities} = 56,000 + 110,650 + 211,987 = \$378,637
\][/tex]
6. Calculate net worth:
[tex]\[
\text{Net Worth} = \text{Total Assets} - \text{Total Liabilities}
\][/tex]
[tex]\[
\text{Net Worth} = 521,086 - 378,637 = \$142,449
\][/tex]
Therefore, the total net worth of the smoothie shop, after accounting for the increased small business loan, is \$142,449.
