Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Bobcat corporation has cash of $18,000, accounts receivable of $35,000, salaries payable of $30,000, inventory of $100,000, LT debt of $120,000, and net fixed assets

Bobcat corporation has cash of $18,000, accounts receivable of $35,000, salaries payable of $30,000, inventory of $100,000, LT debt of $120,000, and net fixed assets of $330,000. The firm estimates that if it wanted to cease operations today it could sell the inventory for $85,000 and fixed assets for $355,000. The firm could collect 100 percent of its receivables as they are secured. What is the market value of the firm's assets?

Group of answer choices

$483,000

$483,000

$493,000

$343,000

None of the above are correct.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Finance questions