You are examining the economy of a very small, completely isolated island nation. There are only three

Question:

You are examining the economy of a very small, completely isolated island nation. There are only three people on this island: Fred, Robinson, and Friday. Fred owns a house valued at $1,000 and owes Friday $500. Robinson owns a house valued at $3,000 and owes Friday $2,000. Friday’s house is valued at $1,500. Derive the of this island economy.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...