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Know Your WorthGrade Level: 7Lesson: 4Lesson DescriptionStudents will analyze families finances to identify assets and liabilities. They will use this information to calculate the families net worth.

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Assets and Liabilities → Net Worth Assets are "what you own" - cash, bank deposits, cash equivalents (stocks and bonds), and property. Liabilities are "what you owe" - credit card balances, loan balances, etc. Net worth is then constructed by the sum of assets minus the sum of the liabilities.

Key Takeaways Revenue is the money a company earns from the sale of its products and services. Cash flow is the net amount of cash being transferred into and out of a company. Revenue provides a measure of the effectiveness of a company's sales and marketing, whereas cash flow is more of a liquidity indicator.

The two basic measures of your financial situation are your net worth and cash flow. Your net worth is a stock, or inventory, that tells you where you currently stand financially. Your cash flow is a measure that gives you a good indication of how the first measure is likely to change over time.

A net worth statement is a financial tool that shows your financial position at a given point in time. It is like a “financial snapshot” that shows the dollar value of what you own (assets) and what you owe (liabilities or debts).

While cash flow denotes the amount of money that enters and exits a company, business, or organization daily, net worth denotes the health of a company, business, or organization by providing a picture of the company's current financial position, stock, or inventory.

To calculate your net worth, you subtract your total liabilities from your total assets. Total assets will include your investments, savings, cash deposits, and any equity that you have in a home, car, or other similar assets. Total liabilities would include any debt, such as student loans and credit card debt.

Net income is the profit a company has earned for a period, while cash flow from operating activities measures, in part, the cash going in and out during a company's day-to-day operations. Net income is the starting point in calculating cash flow from operating activities.

It's a relatively straightforward formula: Net Cash Flow = Net Cash Flow from Operating Activities + Net Cash Flow from Financial Activities + Net Cash Flow from Investing Activities. This can be put more simply, like so: Net Cash Flow = Total Cash Inflows – Total Cash Outflows. ... 100,000 + 40,000 – 60,000 = 80,000.

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Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
DMCA Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
All Forms
Search all Forms
Industries
Forms in Spanish
Localized Forms
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
1-877-389-0141
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232