Niantic Labs (the firm responsible for unleashing Poke mom Go on the world)has r

Question

Niantic Labs (the firm responsible for unleashing Poke mom Go on the world)has realized that demand is much greater than they originally forecasted. They intend to invest heavily in new servers to upgrade their capacity. Their existing servers (which the) purchase two years ago for $68, 10,000) can now be sold for $40, 90,000. In the Course of trying to find the secret locations of the rarest Poke mom you found copies of Niantic Labs most recent financial statements. They showed that the firm has $38, 70, 090 in Net Fixed Assets, $8, 40,000 in Current Liabilities, and $2, 20,000 in Net Working Capital. You've determined that if the current assets were liquidated today the firm would receive $21, 90,000. What are the current book and market values for their total assets?

Explanation / Answer

Amoun $ Current Sale price of old server 4090000 Book value of Old server 6810000 Net Fixed Assets 3870000 Current Liablities 840000 Net Working capital 220000 Liquidation Value 2190000 Book value Amoun $ Book value of Net fixed Assets 3870000 Current Assets (840000+220000) 1060000 Total Book Value 4930000 Market Value Amoun $ Current Sale price of old server 4090000 Liquidation Value 2190000 Total market value 6280000

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