Net value is the total of everything owned minus what is owed for example:
His assets are:
car $7,000
cash $72,865
savings $3,415
jewelry $900
His liabilities are:
house dept $32,695
borrowed from parents $2,680
credit card dept $1,207.80
So his assets add up to $84,180
While his liabilities add up to $36,582.20
Now that we have our assets and liabilities we will subtract them:
84,180.00
-36,180.80
47,597.20
So here we now know that his net worth is $47,597.20 which means he has a. positive net worth.
Hope this helps! ^^
