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Klingon Widgets, Inc., purchased new cloaking machinery three years ago for $6.3 million. The machinery can be sold to the Romulans today for $4.45 million.
Klingon Widgets, Inc., purchased new cloaking machinery three years ago for $6.3 million. The machinery can be sold to the Romulans today for $4.45 million. Klingon's current balance sheet shows net fixed assets of $2.75 million, current liabilities of $1.6 million, and net working capital of $460,000. If all the current assets and current liabilties were liquidated today, the company would receive $2 million cash. a. What is the book value of Klingon's total assets today? Answer is complete but not entirely correct. 6,510,000 $ b. What is the sum of the market value of NWC and market value of fixed assets? Answer is complete but not entirely correct. $ 6,510,000
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