Enzo's Balance Sheet (July 2013) shows total assets of $127,100 and total liabilities of $88,500. Which expression finds Enzo's net worth?

Enzo's Balance Sheet (July 2013) shows total assets of $127,100 and total liabilities of $88,500. Which expression finds Enzo's net worth?

• A. $127,000-$88,500
• B. $127,100-$88,500
• C. $125,000-$85,000
• D. $127,100-$88,400

Answer: (A)

Net worth on a balance sheet is found by subtracting total liabilities from total assets. Using the given numbers, Enzo has assets of 127,100 and liabilities of 88,500. Subtracting 88,500 from 127,100 gives 38,600. So the expression that finds Enzo's net worth uses the exact figures: 127,100 minus 88,500, which equals 38,600. The other expressions change the numbers (rounding or using different figures), leading to a different result. The correct net worth is 38,600.

Net worth on a balance sheet is found by subtracting total liabilities from total assets. Using the given numbers, Enzo has assets of 127,100 and liabilities of 88,500. Subtracting 88,500 from 127,100 gives 38,600. So the expression that finds Enzo's net worth uses the exact figures: 127,100 minus 88,500, which equals 38,600. The other expressions change the numbers (rounding or using different figures), leading to a different result. The correct net worth is 38,600.