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Klingon Widgets, Inc., purchased new cloaking machinery five years ago for $5 million. The machinery can be sold to the Romulans today for $4.5 million.
Klingon Widgets, Inc., purchased new cloaking machinery five years ago for $5 million. The machinery can be sold to the Romulans today for $4.5 million. Klingons current balance sheet shows net fixed assets of $3.5 million, current liabilities of $750,000, and net working capital of $229,000. If all the current accounts were liquidated today, the company would receive $1.11 million cash. |
What is the book value of Klingons total assets today? What is the sum of net working capital and the market value of fixed assets? |
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