We define a company's Net Worth as its assets minus liabilities. Assets are all things of value that may be converted into cash whereas liabilities are the company's total of debts. Now the XY Association went bankrupt while it had 28.6 billion USD in assets and 26 billion USD in liabilities. What was the XY Association's net worth before it went bankrupt?
\(\$2.6 \text {billion}\)
Explanation
To find the net worth, subtract the debts from the assets. Your answer should be in the billions.
Net Worth = Assets − Liabilities
= 28.6 − 26
= 2.6
Therefore, the XY Association had a net worth of \(\$2.6 \).billion
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