Question

Corey has a mountain bike worth $300, a credit card debt of $150, $200 in cash, a Sandy Koufax baseball card worth $400, $1,200 in a checking account, and an electric bill due for $250.

a. Construct Corey’s balance sheet on your own and calculate his net worth

Corey's net worth: $  .

For parts b through d, explain how each 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 whole numbers.

Assets  (Click to select)  increase, decline or remain unchanged  and equal $ _______

Liabilities  (Click to select)  decline, remain unchanged or increase  and equal $ _______

Wealth  (Click to select)  remains unchanged, increases or declines  and equals $ _______

c. Corey uses $150 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 whole numbers.  

Assets  (Click to select) increase  decline  remain unchanged  and equal $ _______

Liabilities  (Click to select) increase  remain unchanged  decline  and equal $ _______

Wealth  (Click to select) declines  remains unchanged  increases  and equals $ _______

d. Corey writes a $150 check on his checking account to pay off his credit card balance.

Instructions: Enter your responses as whole numbers.

Assets  (Click to select) increase  decline  remain unchanged  and equal $ _______

Liabilities  (Click to select) decline  increase  remain unchanged  and equal $ _______

Wealth  (Click to select) increases  remains unchanged  declines  and equals $ _______

e. Of the events in the previous three parts, which, if any, corresponds to saving on Corey’s part?

(Click to select) Parts c-d, Part b, Part d,  Part c, Parts c and d, Parts b and d

Answer 1