Contemporary Mathematics for Business and Consumers 7th Edition by Robert Brechner ,George Bergeman

Exercise 76

A personal balance sheet is the financial picture of how much "wealth" you have accumulated as of a certain date. It specifically lists your assets (i.e., what you own) and your liabilities (i.e., what you owe). Your current net worth is the difference between the assets and the liabilities.
Net worth = Assets - Liabilities
Tom and Carol Jackson have asked for your help in preparing a personal balance sheet. They have listed the following assets and liabilities: current value of home, $144,000; audio/video equipment, $1,340; automobiles, $17,500; personal property, $4,350; computer, $3,700; mutual funds, $26,700; 401(k) retirement plan, $53,680; jewelry, $4,800; certificates of deposit, $19,300; stock investments, $24,280; furniture and other household goods, $8,600; balance on Wal-Mart and Sears charge accounts, $4,868; automobile loan balance, $8,840; home mortgage balance, $106,770; Visa and MasterCard balances, $4,211; savings account balance, $3,700; Carol's night school tuition loan balance, $2,750; checking account balance, $1,385; signature loan balance, $6,350.
Use the data provided and the personal balance sheet on page 14 to calculate the following for the Jacksons.
a. Total assets
b. Total liabilities
c. Net worth
d. Explain the importance of the personal balance sheet. How often should this information be updated?