Let's break down the problem so that we can determine the assets, liabilities, and net worth of the landscaping business step-by-step.
### Step 1: Listing the Assets
First, we'll list and add up all the assets:
1. Owned Inventory: [tex]$30,500
2. Cash: $[/tex]75,420
3. Savings Account: [tex]$28,000
4. Owned Equipment: $[/tex]15,670
5. Accounts Receivable: [tex]$11,560
6. Investments: $[/tex]178,925
To find the total assets, we sum these amounts:
[tex]\[
\text{Total Assets} = 30,500 + 75,420 + 28,000 + 15,670 + 11,560 + 178,925 = 340,075
\][/tex]
### Step 2: Listing the Liabilities
Now, we list and add up all the liabilities:
1. Building Mortgage: [tex]$154,265
2. Small Business Loan: $[/tex]25,652
3. Credit Cards: [tex]$11,450
To find the total liabilities, we sum these amounts:
\[
\text{Total Liabilities} = 154,265 + 25,652 + 11,450 = 191,367
\]
### Step 3: Calculating the Net Worth
The net worth is calculated as the difference between the total assets and the total liabilities:
\[
\text{Net Worth} = \text{Total Assets} - \text{Total Liabilities} = 340,075 - 191,367 = 148,708
\]
### Final Balance Sheet
Putting it all together, the balance sheet for the landscaping business appears as follows:
\[
\begin{array}{|l|r|}
\hline \text{Assets} & \text{Amount} \\
\hline \text{Owned Inventory} & \$[/tex]30,500 \\
\hline \text{Cash} & \[tex]$75,420 \\
\hline \text{Savings Account} & \$[/tex]28,000 \\
\hline \text{Owned Equipment} & \[tex]$15,670 \\
\hline \text{Accounts Receivable} & \$[/tex]11,560 \\
\hline \text{Investments} & \[tex]$178,925 \\
\hline \text{Total Assets} & \$[/tex]340,075 \\
\hline
\end{array}
\]
[tex]\[
\begin{array}{|l|r|}
\hline \text{Liabilities} & \text{Amount} \\
\hline \text{Building Mortgage} & \$154,265 \\
\hline \text{Small Business Loan} & \$25,652 \\
\hline \text{Credit Cards} & \$11,450 \\
\hline \text{Total Liabilities} & \$191,367 \\
\hline
\end{array}
\][/tex]
[tex]\[
\begin{array}{|l|r|}
\hline \text{Net Worth} & \$148,708 \\
\hline
\end{array}
\][/tex]
This balance sheet correctly shows the assets, liabilities, and net worth of the landscaping business.
