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Klingon Widgets, Inc., purchased new cloaking machinery three years ago for $7.3 million. The machinery can be sold to the Romulans today for $4.05 million.
Klingon Widgets, Inc., purchased new cloaking machinery three years ago for $7.3 million. The machinery can be sold to the Romulans today for $4.05 million. Klingon's current balance sheet shows net fixed assets of $3 million, current liabilities of $2.4 million, and net working capital of $470,000. 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? |
b. | What is the sum of the market value of NWC and market value of fixed assets? |
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