Question

amanda is the owner of a flooring company. her assets include $15,000 in cash, $10,000 in inventory, and $5,000 in equipment. her liabilities include a $6,000 credit card balance and $800 in long-term debt. what is amandas equity?$23,400$23,200$20,400$36,800

Explanation:

Step1: Calculate total assets

$\text{Total Assets} = \$15,000 + \$10,000 + \$5,000 = \$30,000$

Step2: Calculate total liabilities

$\text{Total Liabilities} = \$6,000 + \$800 = \$6,800$

Step3: Compute owner's equity

$\text{Equity} = \text{Total Assets} - \text{Total Liabilities} = \$30,000 - \$6,800$

Answer:

$23,200$