Klingon Cruisers, Inc., purchased new cloaking machinery three years ago for $9.6 million. The machinery can be

Question:

Klingon Cruisers, Inc., purchased new cloaking machinery three years ago for $9.6 million. The machinery can be sold to the Romulans today for $6.4 million. Klingon’s current balance sheet shows net fixed assets of $4.9 million, current liabilities of $2.2 million, and net working capital of $850,000. If all the current accounts were liquidated today, the company would receive $2.7 million cash. What is the book value of Klingon’s assets today? What is the sum of NWC and market value of fixed 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...

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