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The financial statements of Jame\'s Auto Repair reflect cash of $14,600, account

ID: 2724923 • Letter: T

Question

The financial statements of Jame's Auto Repair reflect cash of $14,600, accounts receivable of $11,500, accounts payable of $22,900, inventory of $17,800, long-term debt of $42,000, and net fixed assets of $63,800. The firm estimates that if it wanted to cease operations today it could sell the inventory for $35,000 and the fixed assets for $49,000. The firm could also collect 100 percent of its receivables. What is the market value of the assets?

$32,800

$39,900

$74,000

$95,500

$110,100

$32,800

$39,900

$74,000

$95,500

$110,100

Explanation / Answer

The MArket value of the Assets = Cash + Accounts Receivable(MArket value or realisable value)+Inventory (Market value) +Fixed Assets (MArket VAlue)

The MArket VAlue of Assets = 14600+11500+35000+49000 = $110100

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