Question

if greenwave technologies decides to invest an additional $50,000 in equipment, how should you update the spreadsheet to calculate the new net worth? assume total assets are in cell b1, total liabilities are in cell b2, and net worth is calculated in cell b3. update b1 to = 500,000 + 50,000, b2 remains the same, b3 formula remains = b1 - b2 update b2 to = 500,000 - 50,000, b1 remains the same, b3 formula remains = b1 - b2 update b1 to = 500,000 - 50,000, b2 remains the same, b3 formula remains = b1 - b2 update b1 to = 500,000 + 50,000, b2 to = 200,000 + 50,000, b3 formula remains = b1 - b2

Explanation:

Step1: Understand asset - liability relationship

Net worth = Total assets - Total liabilities. When investing in equipment, it is an asset - related transaction. Equipment is an asset. So, total assets increase.

Step2: Update asset value

Since an additional $50,000 is invested in equipment (an asset), the value of total assets in cell B1 should be updated by adding $50,000 to its original value. Liabilities (cell B2) are not affected by this asset - purchase transaction. The formula for net worth in cell B3 ($\text{B3}=\text{B1}-\text{B2}$) remains the same as the relationship between assets, liabilities and net worth is unchanged.

Answer:

update B1 to = 500,000 + 50,000, B2 remains the same, B3 formula remains = B1 - B2