I am struggling with this.... can someone show me how to answer this problem? Klingon Widgets, Inc., purchased new cloaking machinery five years ago for $5 million. The machinery can be sold to the...

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I am struggling with this.... can someone show me how to answer this problem?







Klingon Widgets, Inc., purchased new cloaking machinery five years ago for $5 million. The machinery can be sold to the Romulans today for $4.5 million. Klingon's current balance sheet shows net fixed assets of $3.5 million, current liabilities of $750,000, and net working capital of $229,000. If all the current assets were liquidated today, the company would receive $1.11 million cash.












What is the book value of Klingon's total assets today?
(Enter your answer in dollars, not millions of dollars, i.e. 1,234,567.)











Book value of total assets

$










What is the market value?
(Enter your answer in dollars, not millions of dollars, i.e. 1,234,567.)











Market value of total assets

$


Answered Same DayDec 24, 2021

Answer To: I am struggling with this.... can someone show me how to answer this problem? Klingon Widgets, Inc.,...

Robert answered on Dec 24 2021
124 Votes
SOLUTION:
For book value of current, we are given book value of current assets and net
working capital. Using the equation for net working capital:
CLCANWC 

And rearranging, we get:
000,979$000,750$000,229$  CLNWCCA
We are also given the book value of fixed assets. Therefore, book...
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