Liabilities, Assets, and Net Worth
The Hanson Family has the following assets and liabilities. Can you tell the difference? Identify which are assets and which are liabilities:
• Ownership of a home ($175,000)
• Credit card debt ($200)
• Home mortgage ($120,000)
• Value of retirement savings ($92,000)
• Ownership of 2 automobiles ($23,000)
• Automobile loan debt ($8,500)
• Value of Home furnishings ($3,800)
• Worth of jewelry and other valuables ($5,000)
• Checking account balance ($3,200)
• Savings account balance ($8,800)
• Value of stocks and investments ($12,400)
• Student Loans ($11,000)
List the Assets of the Hanson Family:
Calculate the total value of the family’s assets: ____________
List the Liabilities of the Hanson Family:
Calculate the total value of the family’s liabilities: ______________
What is the net worth of the Hanson family? __________
Assets:
- Ownership of a home ($175,000)
- Value of retirement savings ($92,000)
- Ownership of 2 automobiles ($23,000)
- Value of Home furnishings ($3,800)
- Worth of jewelry and other valuables ($5,000)
- Checking account balance ($3,200)
- Savings account balance ($8,800)
- Value of stocks and investments ($12,400)
Total value of assets: $323,200
Liabilities:
- Credit card debt ($200)
- Home mortgage ($120,000)
- Automobile loan debt ($8,500)
- Student Loans ($11,000)
Total value of liabilities: $139,700
Net worth of the Hanson family: Total assets - Total liabilities
= $323,200 - $139,700
= $183,500