Question
1. The December 31, 2021, balance sheet of Chen, Incorporated, showed long-term debt of $1,420,000 and the December 31, 2022, balance sheet showed long-term debt
1. The December 31, 2021, balance sheet of Chen, Incorporated, showed long-term debt of $1,420,000 and the December 31, 2022, balance sheet showed long-term debt of $1,620,000. The 2022 income statement showed an interest expense of $96,000. What was the firm's cash flow to creditors during 2022?
2. Klingon Widgets, Incorporated, purchased new cloaking machinery three years ago for $5.9 million. The machinery can be sold to the Romulans today for $8.1 million. Klingons current balance sheet shows net fixed assets of $4.7 million, current liabilities of $900,000, and net working capital of $149,000. If all the current accounts were liquidated today, the company would receive $1,015,000 cash.
- What is the book value of Klingons total assets today?
- What is the sum of the market value of NWC and the market value of fixed assets?
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