Lucy Has Prepared Her Personal Balance Sheet and Found That

Multiple Choice

Lucy has prepared her personal balance sheet and found that her total assets are $54,000 and her total liabilities (largely college loans) are $48,000. This indicates that Lucy's:

A) net income is only $6,000.
B) net worth is $6,000.
C) cash flow will not be sufficient to repay her college loans.
D) balance sheet is out of balance.