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15 August, 09:42

Megan's balance sheet shows that on February 7, 2010 she had assets totaling $27,600 and debts totaling $32,500. Which of the following statements best describes her situation? Select one:

a. She had equity. b. She had positive cash flow. c. She had negative net worth. d. She had liabilities. e. She had liquidity.

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  1. 15 August, 11:50
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    Option (C) is correct.

    Explanation:

    Given that,

    Megan's balance sheet shows:

    Total assets = $27,600

    Total debts = $32,500

    Net worth is the difference between total assets and total liability.

    Net worth = Total assets - Total debts

    = $27,600 - $32,500

    = - $4,900

    Therefore,

    Megan's balance sheet shows the negative worth of $4,900.
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