Extracted text: Data table Gallinas Industries Balance Sheet December 31 Assets Liabilities and Stockholders' Equity Cash 40,000 Accounts payable 51,390 Marketable securities 62,810 Notes payable 45,680 45,680 Accounts receivable 68,520 Accrued wages 108,490 $142,750 Inventories Total current liabilities in $279,820 $154,170 Total current assets Long-term debt Land and buildings (net) $ 109,193 Preferred stock 68,520 Machinery and equipment 181,987 Common stock (10,000 shares) 119,910 va Total fixed assets (net) $ 291,180 Retained earnings 85,650 dati $571,000 $571,000 Total assets Total liabilities and stockholders' equity d dis Is gre e u Print Done is bel rval %24 %24 %24
Extracted text: Book and liquidation value The balance sheet for Gallinas Industries is as follows, 9. 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 92% 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 71% of book value. 7. Cash and marketable securities can be liquidated at book value. a. Gallinas Industries' book value per share is $ (Round to the nearest cent.) b. Gallinas Industries' liquidation value per share is $ (Round to the nearest cent.) c. Compare, contrast, and discuss the values found in parts a and b. (Select the best answer below.) A. Liquidation value is greater than book value per share and represents the minimum value for the firm. It is possible for liquidation value to be greater than book value if assets are undervalued, O B. Liquidation value is below book value per share and represents the maximum value for the firm. It is possible for liquidation value to be greater than book value if assets are overvalued. OC. Liquidation value is below book value per share and represents the minimum value for the firm. It is possible for liquidation value to be greater than book value if assets are undervalued,. D. Liquidation value is below book value per share and represents the maximum value for the firm. It is possible for liquidation value to be greater than book value if assets are undervalued.