Question 4

P2-13 Market Values and Book Values (LO1] Klingon Widgets, Inc., purchased new cloaking machinery three years ago for $8 million. The machinery can be sold to the Romulans today for $4.3 million. Klingon's current balance sheet shows net fixed assets of $2.9 million, current liabilities of $2.4 million, and net working capital of $500,000. If all the current assets and current liabilties were liquidated today, the company would receive $1.8 million cash. a. What is the book value of Klingon's total assets today? $ 5,800,000 $ 7,200,000 $10,900,000 $ 2,900,000 $ 4,300,000 b. What is the sum of the market value of NWC and market value of fixed assets? $6,100,000 $7,200,000 $1,800,000 $4,300,000 $5,802,550