A firm's current assets equal $150,000; its fixed assets are $850,000; its current liabilities are $225,000 and its fixed liabilities are $400,000.What is its net worth?
A) $ 75,000
B) $375,000
C) $450,000
D) $600,000

Question

Quizplus · Accepted Answer

Net worth is calculated as the total assets minus total liabilities. Total assets = current assets + fixed assets = $150,000 + $850,000 = $1,000,000. Total liabilities = current liabilities + fixed liabilities = $225,000 + $400,000 = $625,000. Net worth = Total assets - Total liabilities = $1,000,000 - $625,000 = $375,000.

A Firm's Current Assets Equal $150,000; Its Fixed Assets Are