Book and liquidation value The balance sheet for Gallinas Industries is as follows, E 1. Preferred stock can be liquidated at book value. 2. Accounts receivable and inventories can be liquidated at 88% of book value. 3. The firm has 10,000 shares of common stock outstanding. 4. All interest and dividends are currently paid up. 5. Land and buildings can be liquidated at 125% of book value. 6. Machinery and equipment can be liquidated at 73% of book value. 7. Cash and marketable securities can be liquidated at book value. Given this information, answer the following: a. What is Gallinas Industries' book value per share? b. What is its liquidation value per share? Calendar Gallinas Industries Balance Sheet December 31 Assets Cash Liabilities and Stockholders' Equity $ 40,000 Accounts payable $ 75,180 Marketable securities 69,810 Notes payable 42,960 42,960 Accounts receivable 75,180 Accrued wages Inventories 102,030 $ 161,100 Total current liabilities Total current assets $ 287,020 $ 102,030 Long-term debt Land and buildings (net) Machinery and equipment $ 93,743 Preferred stock $ 64,440 156,237 Total fixed assets (net) $ 249,980 Common stock (10,000 shares) Retained earnings 128,880 80,550 $ 537,000 $ 537,000 Total assets Total liabilities and stockholders' equity