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