Muffin’s Masonry, Inc.’s balance sheet lists net fixed assets as $33 million. The fixed assets could currently be sold for $57 million. Muffin’s current balance sheet shows current liabilities of $15.0 million and net working capital of $14.0 million. If all the current accounts were liquidated today, the company would receive $8.20 million cash after paying the $15.0 million in current liabilities.
What is the book value of Muffin’s Masonry’s assets today and the market value of these assets?
|
Balance Sheet lists net fixed Asset or Book Value of Fixed Assets = $33 million
Market value of Fixed Assets = $57 million
- Net Working Capital = Current Assets - Current Liabilities
Book Value of Current Assets = $14 million + $15 million
= $29 million
If Current Assets are liquidated, Conmpany would receive after paying Current Liabilities = $8.20 million
Current Asset's Liquidated amount or Market Value = $8.20 + $15 million
= $23.20 million
Particular | BOOK value (in millions of dollars) | Market value (in millions of dollars) |
Current Assets | $29 | $23.20 |
Fixed Assets | $33 | $57 |
Total | $62 | $80.20 |
Get Answers For Free
Most questions answered within 1 hours.