How to calculate liabilities when net worth and assets are given
To calculate liabilities when net worth and assets are given, you can use the equation:
Liabilities = Assets - Net Worth
Where "Assets" represent the total value of all the assets, and "Net Worth" is the difference between assets and liabilities (i.e., the owner's equity). By rearranging the equation, you can find the liabilities:
Liabilities = Assets - Net Worth
For example, if the total assets are $500,000 and the net worth is $300,000:
Liabilities = $500,000 - $300,000
Liabilities = $200,000
Therefore, the liabilities in this scenario would amount to $200,000.