A cash-flow statement or balance sheet reflects an individuals or familys assets and liabilities on a specified date.

gross income, salaries and wages, assets, liabilities - total expenses, assets, liabilities, fixed expenses = net worth

(what you own) - (what you owe)

1. Personal balance sheet and cash-flow statement and calculating net worth Your financial statements reflect your current financial condition and how much you earn and spend in a given time period. The two most useful statements are the balance sheet and the cash-flow statement. One presents a summary of assets and liabilities at a certain date and the other shows the income and spending of an individual or family for a period of time. A reflects an individual's or family's assets and liabilities on a specified date. Your net worth is reflected on your balance sheet. Complete the net worth formula by selecting the correct term for each piece of the equation that follows. (Whatyouown)(Whatyouowe)= Net Worth (Your true financial wealth) Consider the following example: Don Boyd owns a home valued at $250,000. The balance due on his mortgage is $187,500. $D Don's vehicle is worth $10,000 and the outstanding balance on his car loan is $2,500. All bills are paid and Don's only bank balance shows that he has $5,000 in his account. What is Don's net worth? $445,000$265,000$62,500$75,000