Question
Klingon Widgets, Inc., purchased new cloaking machinery three years ago for $8 million. The machinery can be sold to the Romulans today for $6.7 million.
Klingon Widgets, Inc., purchased new cloaking machinery three years ago for $8 million. The machinery can be sold to the Romulans today for $6.7 million. Klingon's current balance sheet shows net fixed assets of $3.1 million, current liabilities of $790,000, and net working capital of $145,000. If all the current assets were liquidated today, the company would receive $865,000 cash. What is the book value of Klingon's total assets today? What is the market value?
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Introduction To Finance Markets, Investments, And Financial Management
Authors: Ronald W. Melicher, Edgar A. Norton
17th Edition
1119561175, 978-1119561170
