To determine the net worth of the surf shop, we need to follow several steps:
1. Update Property Value: First, we need to account for the increase in the property value by \[tex]$20,000. The original property value is \$[/tex]162,974.
[tex]\[
\text{New Property Value} = \$162,974 + \$20,000 = \$182,974
\][/tex]
2. Calculate Total Assets: Total assets include accounts receivable, the new property value, long term investments, owned inventory, cash, savings account, and owned equipment.
[tex]\[
\begin{align*}
\text{Total Assets} = & \text{Accounts Receivable} + \text{New Property Value} + \text{Long Term Investments} \\
& + \text{Owned Inventory} + \text{Cash} + \text{Savings Account} + \text{Owned Equipment} \\
& = \$10,760 + \$182,974 + \$238,000 + \$72,980 + \$215,083 + \$128,721 + \$30,971 \\
& = \$879,489
\end{align*}
\][/tex]
3. Calculate Total Liabilities: Total liabilities include building mortgage, other debt, small business loan, and long term liabilities.
[tex]\[
\begin{align*}
\text{Total Liabilities} = & \text{Building Mortgage} + \text{Other Debt} + \text{Small Business Loan} + \text{Long Term Liabilities} \\
& = \$109,850 + \$35,988 + \$62,700 + \$38,000 \\
& = \$246,538
\end{align*}
\][/tex]
4. Calculate Net Worth: Net worth is the difference between total assets and total liabilities.
[tex]\[
\text{Net Worth} = \text{Total Assets} - \text{Total Liabilities} = \$879,489 - \$246,538 = \$632,951
\][/tex]
Therefore, the net worth of the surf shop is \[tex]$632,951.
The correct answer is \$[/tex]632,951.
