Drill 20 ·
AP Business with Personal Finance Balance Sheet and Net Worth Drill 20 is a practice drill. It contains 5 original questions created by Brian Stewart, a Barron's test prep author with over 20 years of tutoring experience.
A business-finance drill on reading a balance sheet and computing owner's equity, with interest rates shown inline on each debt; uses an invented business and original figures.
Riverbend Ceramics is a one-person pottery studio. The owner prepares a balance sheet to check the studio's financial position. Each debt lists its annual interest rate in parentheses. The figures are hypothetical.
Balance Sheet for Riverbend Ceramics (as of December 31)
| Item | Amount |
|---|---|
| Assets | |
| Cash and checking | $6,200 |
| Inventory (finished pottery) | $4,800 |
| Equipment (kiln, wheels) | $14,000 |
| Studio van | $9,000 |
| Total assets | $34,000 |
| Liabilities | |
| Equipment loan (7%) | $8,000 |
| Auto loan (6%) | $5,000 |
| Credit card balance (19%) | $1,200 |
| Total liabilities | $14,200 |
| Net worth (owner's equity) | $19,800 |