Klingons current balance sheet shows net fixed assets of 3


Klingon Widgets, Inc., purchased new cloaking machinery four years ago for $4 million. The machinery can be sold to the Romulans today for $3.5 million. Klingon's current balance sheet shows net fixed assets of $3 million, current liabilities of $730,000, and net working capital of $228,000. If all the current assets were liquidated today, the company would receive $1.1 million cash.

What is the book value of total assets?

What is the market value of total assets?

 

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Finance Basics: Klingons current balance sheet shows net fixed assets of 3
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