Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Hannah is offering to sell you her healthcare consulting practice. She has been growing it rapidly over the last several years, and it looks like
Hannah is offering to sell you her healthcare consulting practice. She has been growing it rapidly over the last several years, and it looks like it could continue to grow rapidly for the next several years before stabilizing into a mature, constant growth rate.
Your business broker suggests you consider the book value of Hannahs consulting company. Below is an abbreviated balance sheet for Hannahs business. What is the Book Value of her firm?
Current Assets | |
Cash and Cash equiv | 3,200,000 |
Short term investments | 2,780,000 |
Accounts Receivable, net | 32,000,000 |
Total Current Assets | 37,980,000 |
Net PPE | 6,160,000 |
Total Assets | 44,140,000 |
Current Liabilities | |
Accounts Payable | 2,140,000 |
Accrued Salaries and Payroll Taxes | 5,000,000 |
Current Liabilities | 7,140,000 |
Long Term Debt | 20,000,000 |
Total Liabilities | 27,140,000 |
Common Stock | 5,000,000 |
Retained Earnings | 12,000,000 |
Total Liabilities and Owners' Equity | 44,140,000 |
Group of answer choices
13,000,000
15,000,000
17,000,000
20,000,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started