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Post by bibboid on Oct 4, 2015 16:22:17 GMT -5
My daughter has the following homework problem in her 8th grade math class. My daughter, her math tutor, my wife and I came up with four completely different answers for this.
"Your total assets are $170. You borrow $300 to go on vacation. What is your net worth now?"
What is the correct answer for this?
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Deleted
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Post by Deleted on Oct 4, 2015 16:26:25 GMT -5
Well, technically you have $470 now, but you are also $300 in debt.
So yeah, I don't get it either.
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Professor Chaos
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Post by Professor Chaos on Oct 4, 2015 16:35:34 GMT -5
Assuming you spent the 300 you borrowed then -130 I'd say.
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Post by bibboid on Oct 4, 2015 16:41:40 GMT -5
Our answers so far are:
$470 because that is 170 + 300
$170 because you have $470 in assets - $300 in debts (and have not yet gone on vacation)
-$130 because you have $170 in assets - $300 in debts (since you spent that money on vacation)
-$300 because you spent all your money on vacation and will owe $300.
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triplethreatmark
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Post by triplethreatmark on Oct 4, 2015 17:13:59 GMT -5
It would be -300 if you spend the money you borrowed. Then if you use your assets to hep pay some of the debt, then that means you'd be -130 after it all. If we're including your total assets, wouldn't it be -470?
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Post by Hit Girl on Oct 4, 2015 17:48:13 GMT -5
My daughter has the following homework problem in her 8th grade math class. My daughter, her math tutor, my wife and I came up with four completely different answers for this. "Your total assets are $170. You borrow $300 to go on vacation. What is your net worth now?" What is the correct answer for this? My answer would be $170 |
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Post by Confused Mark Wahlberg on Oct 4, 2015 17:58:00 GMT -5
If you haven't gone on vacation, then you would have a cash debit of 300 and a liability credit of -300.
So your net worth hasn't changed.
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jagilki
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Post by jagilki on Oct 4, 2015 18:09:03 GMT -5
Who cares? You're not rich nor famous so you don't matter. Just go work at McDonalds and live in debt the rest of your life.
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Deleted
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Post by Deleted on Oct 4, 2015 18:45:26 GMT -5
I just realized: The answer is that someone with only $170 to their name probably shouldn't be spending it on a vacation.
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bob
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Post by bob on Oct 4, 2015 18:45:29 GMT -5
-$130
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Post by Bob Schlapowitz on Oct 4, 2015 19:38:22 GMT -5
I...misread the thread title, and got very worried.
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Deleted
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Post by Deleted on Oct 4, 2015 19:56:41 GMT -5
If net worth is total assets minus total outide liabilities..
$130 right?
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Deleted
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Post by Deleted on Oct 4, 2015 20:53:20 GMT -5
Your 130 in the hole as you will need to repay the 300. Assuming you can pay it back, then you will still have the 170.
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Post by Raskovnik on Oct 4, 2015 21:05:26 GMT -5
I'd say the correct answer is your net worth is $-130. $170 is what you have. $300 is what you borrowed. You're $-130 in the hole. You're covering negative integers in middle school anyways, so it's not like it's an out of left field thing.
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Post by Red Impact on Oct 4, 2015 21:12:25 GMT -5
As others have said, net worth is asset-liabilities. If you have not yet used the $300, then you have a worth of 170 (it's still money that you are in possession of, so itd balance out your libilities). If you do use it on vacation, then your new net worth is -130
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Deleted
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Post by Deleted on Oct 4, 2015 21:54:48 GMT -5
You should have her turn in a paper with a bunch of hatch marks random numbers on it and bitch about Common Core.
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Post by bluemeii on Oct 4, 2015 21:58:31 GMT -5
Our answers so far are: $470 because that is 170 + 300
$170 because you have $470 in assets - $300 in debts (and have not yet gone on vacation)-$130 because you have $170 in assets - $300 in debts (since you spent that money on vacation) -$300 because you spent all your money on vacation and will owe $300. Kudos to whomever was the 2nd answer. That's if the cash is still on hand that is. |
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Post by Unaffiliated on Oct 4, 2015 22:23:51 GMT -5
Is this a math or accounting question?
I'm an accountant, so my answer would be $170 (no change). The $300 received (as cash presumably) is an asset, but receiving it as a loan means you also have a note payable (a liability) of $300. Since net worth is assets - liabilities, the two "items" cancel each other out.
This answer involves concepts specific to accounting, so I'm not sure if that's what a math question is looking for. I never had such questions in math classes, but then again I didn't go through the same school system.
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ayumidah
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Post by ayumidah on Oct 5, 2015 0:50:55 GMT -5
Minus 130?
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Post by Rolent Tex on Oct 5, 2015 1:15:24 GMT -5
I believe it's still $170. You're $300 in debt but you haven't spent the $300 yet so they cancel each other out.
Now if you go on that vacation and spend it all, your net worth is -300 since you owe $300 and have no other assets apparently. You car less, home less scruffy hobo you!
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