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Calculating Net Worth
Net worth = Assets – Liabilities
Assets Liabilities
Value of house $190,000.00 Emloyment tax payable $870.00
Life Insurance $300,000.00 Car $16,500.00
Taxable interest earned $900.00 CC Balance $3,800.00
Capital gains $126.00
Checking $5,000.00
IRA $24,000.00
CD $18,000.00
Car $46,000.00
Savings $16,000.00
401(K) $18,000.00
Total Assets $618,026.00 Total Liabilities $21,170.00
Net Worth $596,856.00
Looking at the Fleming’s balance sheet:
a.Do the Flemings have an adequate emergency fund?
b.If no, how much should they have set aside?
c.Why are they adequately protected or why do they need more set aside