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Assignment 02: Calculating Net Worth

Assignment 02: Calculating Net Worth Assignment 02: Calculating Net WorthHA4200D – Healthcare Financial ManagementAssignment 02: Calculating Net WorthOrganizations calculate their financial net worth in order to show their financial health. A personal can also calculate their personal net worth by subtracting their liabilities from their assets. Using the steps below, identify and list assets and liabilities, then calculate your personal net worth.ORDER A PLAGIARISM-FREE PAPER HEREDirections.Step 1: Create a list all your personal assets and liabilities. You should list all your personal assets and liabilities. You should list at least 3-5 assets and 3-5 liabilities. Make sure to note if your asset and liability is a long-term or short-term asset and liability..Step 2: Once you have all your assets and liabilities listed and identified as long or short-term, determine the value of each asset and liability..Step 3: Using the information from your textbook and the personal Net Worth information from the Charles Swab personal net worth webpage, calculate your personal net worth. The formula for calculating net worth is below:Assets – Liabilities = Net WorthAssignment 02: Calculating Net WorthView the Assignment 02 Walk-Through for a detailed, step-by-step video about how to complete this assignment. (Transcript)LP 2 Financial Assignment TranscriptIn this video we are going to review organizational assets and liabilities as well calculate Net Worth. In our financial assignment students are being asked to list all their personal assets and liabilities and then to calculate their personal net worth. Students will also be asked to label their assets and liabilities as either short or long-term. Before attempting the financial assignment make sure to review all the learning activities and all the information in the assignment instructions. First create a table that has several rows for assets and liabilities, along with a column for short and long-term labels and a column for the value of each item added as an asset or liability. Also, make sure to create a row for totaling both the assets and liabilities.Assignment 02: Calculating Net Worth Also add a row at the bottom of the table for entering the difference between the asset and liability totals, which will be the net worth. A personal net worth table may look like this table on your screen. Let’s review the definition of an asset. An asset for an organization can be cash, accounts receivable, notes receivable, and inventory. An asset is anything the adds cash value to the organization. Assets can be labeled either “short” or “long-term” assets. If an asset can be turned into cash within a 12-month period, it is short term. If, on the other hand, an asset cannot be converted into cash within a 12-month period, it is considered long term. Now we are going to review the term liability. An organizational liability can be accounts payable, payroll taxes due, notes payable, and mortgages payable. Liabilities can be either “short-term” or “long-term” liabilities. If a liability is expected to be paid within a 12-month period, it is short-term. If, however, the liability cannot reasonably be expected to be paid within a 12-month period, it is considered long-term. Once your table has been created add at least 3-5 assets to the asset area of the table and 3-5 liabilities to the liability section of the table. Add additional rows for more than 5 items in each category. For each asset and liability make sure to label if they are short or long-term assets or liability, as well as adding the amount or value of each to the far-right column. After all the assets and liabilities have been added to the table, add up the value of all the assets and add up all the values for the liabilities. To determine your personal net worth, subtract your total liabilities from your total assets.Assignment 02: Calculating Net Worth

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