Klingon Widgets Inc purchased new cloaking machinery three y

Klingon Widgets, Inc., purchased new cloaking machinery three years ago for $4.6 million. The machinery can be sold to the Romulans today for $6.8 million. Klingon

Solution

1)

Net working capital = current assets - current liabilities

=>

136,000 = current assets - 770,000

book value of current assets = 906,000

book value net fixed assets = 3,400,000

book value of total assets = 3,400,000 + 906,000 = $4,306,000 ...............ans

2)

market value of current assets = 885,000

market value of net fixed assets = 6,800,000

market value of total assets = 6,800,000 + 885,000 = $7,685,000 ............ans