document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1190345>Question 1190345</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Use the following balance sheet and cash flow information to determine the net worth and net surplus for an individual in a recent month:  <BR>\n" );
document.write( "Liquid Assets $15,000<BR>\n" );
document.write( "Home Value $220,000<BR>\n" );
document.write( "Investment assets: $120,000<BR>\n" );
document.write( "Personal Property $30,000<BR>\n" );
document.write( "Total assets:  $385,000\r<BR>\n" );
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document.write( "Short Term Debt:  $7000 ($250 a month)<BR>\n" );
document.write( "Monthly Mortgage Payment $1400 on a $180,000 mortgage<BR>\n" );
document.write( "Total Debt:  $187,000\r<BR>\n" );
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document.write( "Monthly Gross Income:  $11,000<BR>\n" );
document.write( "Monthly Disposable Income $ 4000<BR>\n" );
document.write( "Monthly Expenses:  $7000\r<BR>\n" );
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document.write( "Networth would be $198,000\r<BR>\n" );
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document.write( "I subtracted assets from liabilities to get net worth. \r<BR>\n" );
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document.write( "I'm not sure how to figure out net worth \r<BR>\n" );
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document.write( "I thought id subratct 11,000 from 7,000 and get 4000 but that doesn't seem right\r<BR>\n" );
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document.write( "net worth = (total assets) - (total liabilities)<BR>\n" );
document.write( "net worth = $385,000 - $187,000<BR>\n" );
document.write( "net worth = <font color=red>$198,000</font>\r<BR>\n" );
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document.write( "There's no need to involve the other numbers because they are built into the totals mentioned. \r<BR>\n" );
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document.write( "The $11,000 monthly gross income and the $4000 disposable income combine to $15,000 which is the amount of liquid assets. The liquid assets are part of the total assets.\r<BR>\n" );
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document.write( "The $7000 in monthly expenses would be the short term debt, and that is part of the total liabilities (i.e. debt).<BR>\n" );
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