Corey has a mountain bike worth 350. a credit card debt of 200, 210 in cash, a Sandy Koufax baseball card worth 500, 1,250 in a checking account.and an electric bill due for 300. a. Construct Corey's balance sheet and calculate his net worth. Instructions: Enter your responses as whole numbers. Corey's net worth: For parts b through d, explain how the event affects Corey's assets liabilities, and wealth. b. Corey goes to a baseball card convention and finds out that his baseball card is a worthless forgery. Instructions: Enter your responses as integer values. Assets square and equal square Liabilities square and equal Wealth square and equals c. Corey uses 200 from his paycheck to pay off his credit card balance. The remainder of his paycheck is spent in a way that does not impact his balance sheet. Instructions: Enter your responses as integer values. Assets square and equal square Liabilities square ) and equal Wealth square and equals d. Corey writes a 200 check on his checking account to pay off his credit card balance. Instructions: Enter your responses as integer values. Assets square and equal Liabilities square and equal Wealth square and equals Of the events in the previous three parts, which if any, corresponds to saving on Corey's part? Part square corresponds to saving

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Corey has a mountain bike worth 350. a credit card debt of 200, 210 in cash, a Sandy Koufax baseball card worth 500, 1,250 in a checking account.and an electric bill due for 300. a. Construct Corey's balance sheet and calculate his net worth. Instructions: Enter your responses as whole numbers. Corey's net worth: For parts b through d, explain how the event affects Corey's assets liabilities, and wealth. b. Corey goes to a baseball card convention and finds out that his baseball card is a worthless forgery. Instructions: Enter your responses as integer values. Assets square and equal square Liabilities square and equal Wealth square and equals c. Corey uses 200 from his paycheck to pay off his credit card balance. The remainder of his paycheck is spent in a way that does not impact his balance sheet. Instructions: Enter your responses as integer values. Assets square and equal square Liabilities square ) and equal Wealth square and equals d. Corey writes a 200 check on his checking account to pay off his credit card balance. Instructions: Enter your responses as integer values. Assets square and equal Liabilities square and equal Wealth square and equals Of the events in the previous three parts, which if any, corresponds to saving on Corey's part? Part square corresponds to saving

Answer 1

Let's go through each part step by step. ### a. Construct Corey's balance sheet and calculate his net worth. **Assets:** - Mountain bike: \$350 - Cash: \$210 - Sandy Koufax baseball card: \$500 - Checking account: \$1,250 Total Assets = \$350 + \$210 + \$500 + \$1,250 = \$2,310 **Liabilities:** - Credit card debt: \$200 - Electric bill: \$300 Total Liabilities = \$200 + \$300 = \$500 **Net Worth:** Net Worth = Total Assets - Total Liabilities = \$2,310 - \$500 = \$1,810 Corey's net worth: \$ **1,810** ### b. Corey finds out that his baseball card is a worthless forgery. **Effect on Assets:** - The value of the baseball card goes from \$500 to \$0. New Total Assets = \$2,310 - \$500 = \$1,810 **Effect on Liabilities:** - No change in liabilities. Liabilities remain \$500. **Effect on Wealth (Net Worth):** Net Worth = New Total Assets - Liabilities = \$1,810 - \$500 = \$1,310 Assets decrease by \$500 and equal \$ **1,810** Liabilities remain unchanged and equal \$ **500** Wealth decreases by \$500 and equals \$ **1,310** ### c. Corey uses \$200 from his paycheck to pay off his credit card balance. **Effect on Assets:** - No change in total assets since the remainder of the paycheck does not impact the balance sheet. Assets remain \$1,810. **Effect on Liabilities:** - Credit card debt is paid off, reducing liabilities by \$200. New Liabilities = \$500 - \$200 = \$300 **Effect on Wealth (Net Worth):** Net Worth = Assets - New Liabilities = \$1,810 - \$300 = \$1,510 Assets remain unchanged and equal \$ **1,810** Liabilities decrease by \$200 and equal \$ **300** Wealth increases by \$200 and equals \$ **1,510** ### d. Corey writes a \$200 check on his checking account to pay off his credit card balance. **Effect on Assets:** - Checking account decreases by \$200. New Total Assets = \$1,810 - \$200 = \$1,610 **Effect on Liabilities:** - Credit card debt is paid off, reducing liabilities by \$200. New Liabilities = \$300 - \$200 = \$100 **Effect on Wealth (Net Worth):** Net Worth = New Total Assets - New Liabilities = \$1,610 - \$100 = \$1,510 Assets decrease by \$200 and equal \$ **1,610** Liabilities decrease by \$200 and equal \$ **100** Wealth remains unchanged and equals \$ **1,510** ### Of the events in the previous three parts, which, if any, corresponds to saving on Corey's part? Part **c** corresponds to saving because Corey used his paycheck to reduce his liabilities without affecting his assets, effectively increasing his net worth.

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