Net Worth Example - $3,000 Loan from a friend $250 Total...

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Personal Net Worth Statement Balance Sheet if a business What I own and owe as of 2/16/2012 Cash: $1000 Cat Card: $100 - Unused balance (can easily be converted to cash within 12 months) School Loan Balance: $5000 Payments begin: Aug-13 Car Loan Balance: $3000 - Last Payment Due Jan-13 Car: $10,000 - Market Value (What it could sell for now, ie. Blue Book Value) Book Collection: $2,000 (Appraised Value) Loan from a friend: $250 (Promise to repay by) Dec-12 NET WORTH STATEMENT (Balance Sheet) AS OF 2/16/2012 ASSETS Current Cash $1,000 Cat Card $100 Total Current Assets $1,100 Assets convertible to cash within 1 year Long Term Assets Car $10,000 Book Collection $2,000 Total Long Term Assets $12,000 All other Assets TOTAL ASSETS $13,100 Everything I own LIABILITIES Current Car Loan
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Unformatted text preview: $3,000 Loan from a friend $250 Total Current Liabilities $3,250 Obligations due within the next year Long Term Liabilities Student Loan $5,000 Total Long Term Liabilities $5,000 All Other Obligations TOTAL LIABILITIES $8,250 Everything I owe NET WORTH (Owner's Equity) $4,850 Everything I own minus all that I owe TOTAL LIABILITIES + NET WORTH $13,100 The "Accounting Equation" Current Assets are assets that can be readily converted to cash within 1 year from now. Current Liabilities are obligations due within the next 12 months. Long Term assets are all other assets. Long Term Liabilities are obligations due more than 1 year from now. NOTE: TOTAL ASSETS = TOTAL LIABILITIES + NET WORTH (Owners' Equity)...
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This note was uploaded on 02/16/2012 for the course ENGR 265 taught by Professor Arnold during the Spring '09 term at University of Arizona- Tucson.

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