Ask Question
21 July, 20:34

Klingon Cruisers, Inc., purchased new cloaking machinery four years ago for $8 million. The machinery can be sold to the Romulans today for $7.3 million. Klingon's current balance sheet shows net fixed assets of $6 million, current liabilities of $760,000, and net working capital of $219,000. If all the current assets were liquidated today, the company would receive $1.01 million cash. What is the book value of Klingon's assets today? (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars

+2
Answers (1)
  1. 21 July, 21:06
    0
    book value of the assets: 6,979,000 dollars

    Explanation:

    As we are asked for the book value, we should ignore market value of fixed and current asset and only consider the accounting values.

    fixed assets balance sheet: 6,000,000

    net working capital: current assets - current liabilities

    219,000 = current assets - 760,000

    current assets = 219,000 + 760,000 = 979,000

    total book value of the assets: 6,000,000 + 979,000 = 6,979,000
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Klingon Cruisers, Inc., purchased new cloaking machinery four years ago for $8 million. The machinery can be sold to the Romulans today for ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers