Kimbo Widgets Inc. purchased new cloaking machinery five years ago for $5 million. The machinery can be sold to the Rimalons todayfor $4.5 million. Kimbo's current statement of financial position shows net fixed assets of $3.5 million, current liabilities of $0.75 million,and networking capital of $350,000. If all the current assets were liquidated today, the company would receive $1.11 million cash. (Donot round intermediate calculations. Enter the answers in dollars, not millions of dollars, i.e. 1,234,567. Omit $ sign in yourresponse.)What is the book value of Kimbo's total assets today?Total asset book value$What is the market value?Total asset market value

Total assets:Total assets refer to the sum total of all resources owned and controlled by a…

Answered: Kimbo Widgets Inc. purchased new…

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 $12 million. The machinery can be sold to the Romulans today for $11 million. Klingon's current balance sheet shows net fixed assets of $9 million, current liabilities of $800,000, and net working capital of $221,000. If the current assets and current liabilities were liquidated today, the company would receive a total of $1.03 million cash. a. What is the book value of Klingon's total assets today? (Enter your answer in dollars, not millions of dollars, e.g., 1,234,567.) b. What is the sum of the market value of NWC and the market value of fixed assets? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, e.g., 1,234,567.) a. Book value of total assets b. Sum of the market value of NWC and market value of fixed assets
Consider each of the transactions below independently. All of the expenditures were made in cash. 1. During 2020, PC Software Inc. developed a new personal computer database management software package. Total expenditures on the project were $300,000, of which 30% occurred before the technological feasibility of the product had been established. 2. Xon Corporation paid $50,000 to complete overhaul of the plumbing system (old costs unknown). 3. The Johnson Company disposed of an old machine with an original cost of $8,000 and a book value of $4,000 and received $3,000. Required: Prepare journal entries to record each of the above transactions. Note: You may create a table as follows to organize your journal entries. Date Account titles Debit Credit 1 Cash 10,000 Sales Revenue 10,000 Edit Format Table Paragraph v в I U A 12pt v
B2B Company is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment costs $360,000 and has a 12-year life and no salvage value. The expected annual income for each year from this equipment follows. Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation-Equipment Selling, general, and administrative expenses Income (a) Compute the annual net cash flow. (b) Compute the payback period. (c) Compute the accounting rate of return for this equipment. Complete this question by entering your answers in the tabs below. Required A Compute the annual net cash flow. Required B Required C Annual Results from Investment Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation Equipment Selling, general, and administrative expenses. Income Net cash flow Income $ 225,000 $ 120,000 30,000 22,500 52,500 $ 225,000 120,000 30,000 22,500 $ 52,500 Cash Flow Flow
Taste-T Company has been in business for 30 years and has developed a large group of loyal restaurant customers. Down Home Foods made an offer to buy Taste-T Company for $6,000,000. Themarket value of Taste-T’s tangible assets, net of liabilities, on the date of the offer is $5,600,000.Taste-T also holds a patent for a fluting machine that the company invented (the patent with a market value of $200,000 was never recorded by Taste-T because it was developed internally). Howmuch has Down Home Foods included for intangibles in its offer of $6,000,000? Assuming TasteT accepts this offer, which company will report Goodwill on its balance sheet and at what amount?
Moshup Ltd sold a building for $145 million. The building cost $205 million several years ago and at the time of sale it had a carrying amount of $128 million. Calculate, to the nearest million dollars, the gain or loss on the sale of the building. Designate any loss calculated by preceding your figure with a negative sign.
Truffle Inc. acquired a patent on January 1, 2015 for $7,800,000. It was expected to have a 10 year life and no residual value. Truffle uses straight-line amortization for its patents. On December 31, 2018, the expected future cash flows from the patent are $518,000 per year for the next six years. The present value of these cash flows, discounted at Truffle’s market interest rate, is $2,120,000. What amount, if any, of impairment loss will be reported on Truffle’s 2018 income statement?
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See the explanation below to work the problem. XYZ Company, a 'for-profit' business, had revenues of $12 million in 2022. Expenses other than depreciation totaled 75 percent of revenues. XYZ Company, must pay taxes at a rate of 40 percent of pretax (operating) income. All revenues were collected in cash during the year, and all expenses other than depreciation were paid in cash. Depreciation originally was $1.5 million; however, a change in the depreciation schedule (still within GAAP) has now made the depreciation expense DOUBLE. Based on this change in depreciation expense, what would XYZ's net income now be? Select one or more: a. so b. $3,000,000 c. $1,500,000 Od. Not enough information to tell
Klingon Widgets, Incorporated, purchased new cloaking machinery three years ago for $5.2 million. The machinery can be sold to the Romulans 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 nearest whole 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 nearest whole number, e.g., 1,234,567. a. Book value of total assets b. Sum of market value of NWC and fixed assets
In early 2024, Menz Corporation acquired NeuroLab to obtain technology that NeuroLab was in the process of developing. The total acquisition cost included $2 million for this technology. At the time of acquisition, the technology had not yet reached the point of technological feasibility. During the remainder of 2024, Menz spent an additional $1 million to improve the technology, which then reached the point of technological feasibility by the end of the year. The new technology was expected to provide benefits to Menz over the subsequent five years. What amount of research and development expense would Menz record in 2024? Multiple Choice $2 million $3 million O $1 million $0
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Willamston Widgets has one fixed asset, which it purchased 5 years ago for $5,000,000. It has taken a total of $2,000,000 in Depreciation charges on that asset, and the company has determined that it could be sold today for $2.500,000. The company's balance sheet shows a total of $2,000,000 in Current Liabilities, and the company has $500,000 in Net Working Capital. If all of the company's Current Assets were liquidated today, the company would receive $1,000,000. What is the Book Value of the company's Total Assets? Multiple Choice O $7,500,000 $5,500,000 $4,000,000 $1,500,000 $4.500.000

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