Welcome I FlashUne ×yDChamer 2 Homework Econnect Business Finance: Summer 2018 S

Question

Welcome I FlashUne ×yDChamer 2 Homework Econnect Business Finance: Summer 2018 Summer I Luke Covert Chapter 2 Homework Instructions I help Question 5 fof 10 Save & Ext Subm 5. 10.00 points Klingon Widgets, Inc., purchased new dloaking machinery three years ago for $4.1 miltion. The machinery can be sold to the million Klingon's current balance sheet shows net fixed assets of $2 9 milion, current liabilities of $720,000, and net working capital of $131,000 fal the cument accounts were liquidated today, the company would neceive $835,000 cash today for $6.3 What is the book value of Klingon's total assets today? (Enter your answer in dollars, not millions of dollars,e.g.. 1,234,567. Do not round intermediate calculations and round your answer to the nearest whole number,e.g32.) value of total sets What is the sum of the market value of NWC and market value of fxed assets? (Enter your answer in dollars, not millions of dolars.g 234,567. Do not round intermediate calculations and round your answer to the nearest whole number, eg. 32.) Sum References Book & Resources Worksheet Leaning Objective 02-0 accounting value (or boo value) and maket value Section 21 The Balance Sheet Check my wor ype here to search

Explanation / Answer

Book value = total assets - liabilities = 2,900,000 - 720,000 = 2,180,000

Net working capital = 131,000, Current laibilities = 720,000
Current assets = Net working capital + Current liabilities = 720,000 + 131,000 =589,000
market value of current assets = 835,000
Market value of Net working capital = Market value of Currents assets - Current liabilities = 835,000 - 720000 = 115,000
Market value of assets = 6,300,000
Sum of market value of Net working capital and market value of assets = 6,300,000 + 115,000 = 6,415,000

Best of Luck. God Bless

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