Determination of net worth.
Use the following information to determine how much Xavier Metals is worth at the end of 2007. Can you think of any additional information you would like know about Xavier Metals to help you answer this question more thoroughly? Explain. (Note: All $ amounts are in millions. Assume there are 10 million shares of common stock outstanding.)
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Xavier Metals
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2007
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2006
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Cash
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119
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98
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Marketable Securities
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59
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-0-
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Accounts receivable
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312
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254
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Inventory
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278
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239
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Prepaid expenses
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35
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21
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Fixed assets
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536
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409
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Accumlated depreciation
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( 76)
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( 53)
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Accounts payable
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212
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198
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Accrued expenses
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98
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76
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Dividend payable
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40
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-0-
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Notes payable
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125
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-0-
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Common stock
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600
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550
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Retained earnings
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188
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144
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