Klingon Cruisers, Inc., purchased new cloaking machinery three years ago for $7 million. The machinery can be

Question:

Klingon Cruisers, Inc., purchased new cloaking machinery three years ago for $7 million. The machinery can be sold to the Romulans today for $5.3 million. Klingon’s current balance sheet shows net fixed assets of $3.9 million, current liabilities of $1.075 million, and net working capital of $320,000. If all the current accounts were liquidated today, the company would receive $410,000 cash. What is the book value of Klingon’s total assets today? What is the sum of the market value of NWC and market value of assets?

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...