P7-19 Book and liquidation value The balance sheet for Gallinas Industries is as follows. Gallinas Industries Balance Sheet as of December 31 Assets Liabilities and stockholders' e quity Cash $100,000 $ 40,000 Accounts pa yable Marketables 60,000 Notes payabl 30,000 ecurities e 120,000 Accrued wag 30,000 Accounts re- ceivable es Inventories 160,000 Total cur- $160,000 rent liabilities Total cur- $380,000 Long-term de $180,000 rent assets bt $ 80,000 Land and buil dings (net) $150,000 Preferred sto ck 260,000 Machinery an d equipment 250,000 Common sto ck (10,000 sh ares) Total fixed 100,000 $400,000 Retained ear nings assets (net) Total asset $780,000 Total liabil- $780,000 S ities and stoc kholders' equ ity Additional information with respect to the firm is available: 1. Preferred stock can be liquidated at book value. 2. Accounts receivable and inventories can be liquidated at 90% of book value. 3. The firm has 10,000 shares of common stock outstanding. 4. All interest and dividends are currently paid up. 5. Land and buildings can be liquidated at 130% of book value. 6. Machinery and equipment can be liquidated at 70% of book value. 7. Cash and marketable securities can be liquidated at book value. Given this information, answer the following: a. What is Gallinas Industries' book value per share? b. What is its liquidation value per share? c. Compare, contrast, and discuss the values found in parts a and b