Question
Klingon Widgets, Inc., purchased new cloaking machinery three years ago for $4 million. The machinery can be sold to the Romulans today for $6.2 million.
Klingon Widgets, Inc., purchased new cloaking machinery three years ago for $4 million. The machinery can be sold to the Romulans today for $6.2 million. Klingons current balance sheet shows net fixed assets of $2.8 million, current liabilities of $710,000, and net working capital of $130,000. If all the current assets were liquidated today, the company would receive $825,000 cash.
What is the book value of klingons assets today ? What is the Market Value ? My question is about the inital purchase of the machine do I need to do something with that and the price they can sell it for ? For Book value I got 1.96 million and for Market Value I got 825,000. Is this correct or am I missing something ? Thanks for taking the time to read this.
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