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Following is the economical balance sheet of Trend Private Ltd which manufactures denim fabric. Capital Employed Amount (in ) Invested Capital Amount (in ) Operating
Following is the economical balance sheet of Trend Private Ltd which manufactures denim fabric.
Capital Employed | Amount (in ) | Invested Capital | Amount (in ) |
Operating assets | Owners equity | ||
Net fixed assets | 3,50,000 | Equity share capital | 5,00,000 |
Operating working capital | 1,50,000 | Reserve and surplus | 40,000 |
Non-operating assets | Debt | ||
Cash | 1,20,000 | Long-term debt | 80,000 |
Total | 6,20,000 | Total | 6,20,000 |
LNJ Ltd, a manufacturer of jeans, wants to acquire Trend Private Ltd. LNJ is planning to stop Trend's business after the acquisition.
The machines of Trend Private Ltd can be sold in the market for 1,00,000. The realisable value from working capital is coming out to be 50,000.
Based on this information, what will be the value of the operating assets of Trend Private Ltd from the perspective of LNJ Ltd?
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