Klingon Cruisers Inc purchased new cloaking machinery three years ago for $9 5million The machinery can be sold to the Romulans today for $6 3 million Klingons current balance sheet shows net fixed assets of $5 million, current liabilities of $2 1 million, and net working capital of $800,000 If all...

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Klingon Cruisers Inc. purchased new cloaking machinery three years ago for $9.5million. The machinery can be sold

Question:

Klingon Cruisers Inc. purchased new cloaking machinery three years ago for $9.5 million. The machinery can be sold to the Romulans today for $6.3 million. Klingon’s current shows net fixed assets of $5 million, current liabilities of $2.1 million, and net working capital of $800,000. If all the current assets were liquidated today, the company would receive $2.8 million cash. What is the book value of Klingon’s assets today? What is the market value?
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...