Respuesta :
Answer:
A. Book Value of Klingon’s Total Assets= Net Fixed Assets +Current assets = $3,400,000 + $1,130,000
=$4,530,000
B. What is the sum of the market value of NWC and the market value of fixed assets
i. Market Value of NWC = $5.1 million
ii. the market value of fixed assets =$5.1 million
Explanation:
Net working capital= Current assets minus current liabilities.
$235,000 =Current assets-$895,000
Current assets=$235,000 +$895,000= $1,130,000
Market value of new cloaking machinery(NWC) is equal to the market value of fixed assets. This is because the market values of other fixed assets is assume to be zero.
Book value of assets can be said as the value of the assets of the firm in the books of accounts. The total book value can be obtained by adding all the assets like fixed assets and current assets.
(a) The book value of Klingon Widgets Inc. can be calculated as follows:
Calculations
[tex]\begin{aligned}\rm \: Total \:Assets&=\rm Net\: Fixed \: Assets+ Net\:Current\:Assets\\\rm Total \:Assets&= \$3,400,000+ \$1,130,000\\\rm \:Total \:Assets&= \$4,530,000 \end[/tex]
(b) Net Working Capital is the difference obtained by deducting current liabilities from current assets.
Net working capital is given as $235,000 in the question and fixed assets are assumed as zero. So the Sum of NWC and Fixed assets is also the same as NWC.
Learn more about Net Working Capital here:
brainly.com/question/14612376
