Klingon Widgets, Incorporated, purchased new cloaking machinery three years ago for $5.2 million. The machinery can be sold to theRomulans today for $7.4 million. Klingon's current balance sheet shows net fixed assets of $4 million, current liabilities of $830,000,and net working capital of $142,000. If all the current accounts were liquidated today, the company would receive $945,000 cash.a. What is the book value of Klingon's total assets today?Note: Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearestwhole number, e.g., 1,234,567.b. What is the sum of the market value of NWC and the market value of fixed assets?Note: Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearestwhole number, e.g., 1,234,567.a. Book value of total assetsb. Sum of market value of NWC and fixed assets

Net working capital is to be calculated by deducting the current liabilities from the current assets…

Answered: Klingon Widgets, Incorporated,…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Klingon Widgets, Incorporated, purchased new cloaking machinery three years ago for $4.4 million. The machinery can be sold to the Romulans today for $6.6 million. Klingon’s current balance sheet shows net fixed assets of $3.2 million, current liabilities of $750,000, and net working capital of $134,000. If all the current accounts were liquidated today, the company would receive $865,000 cash. What is the book value of Klingon’s total assets today? Note: Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567. What is the sum of the market value of NWC and the market value of fixed assets? Note: Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567.
Klingon Widgets, Incorporated, purchased new cloaking machinery three years ago for $4.0 million. The machinery can be sold to the Romulans today for $6.2 million. Klingon’s current balance sheet shows net fixed assets of $2.8 million, current liabilities of $710,000, and net working capital of $130,000. If all the current accounts were liquidated today, the company would receive $825,000 cash. What is the book value of Klingon’s total assets today? What is the sum of the market value of NWC and the market value of fixed assets?
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Six years ago, ABC Company invested $47,736 in a new machinery. The investment in net working capital was $9,046 which would be recovered at the end of the project. Today, ABC Company is selling the machinery for $17,745. Today, the book value of the machinery is $11,017. The tax rate is 35 percent. What are the terminal cash flows in Year 6? Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

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