5. A family with $80,000 in assets and $48,000 of liabilities would have a net worth of

a$16,000.

b $80,000.

c $32,000.

d $128,000.

e $48,000.

6.Which of the following situations describes a person who could be insolvent?

a Assets $40,500; liabilities $46,500

b Liabilities $45,500; net worth $7,500

c Assets $78,500; net worth $23,500

d Assets $56,500; annual expenses $61,500

e Annual cash inflows $45,500; liabilities $51,500