Klingon Widgets, Inc., purchased new cloaking machinery three years ago for $3 million. The machinery can be sold to the Romulans today for $2.5 million. Klingon’s current balance sheet shows net fixed assets of $2 million, current liabilities of $710,000, and net working capital of $227,000. If all the current assets were liquidated today, the company would receive $1.09 million cash.