. Market Values and Book Values (LO1) Kimbo Widgets Inc. purchased new cloaking machinery three years ago for $7 million. The machinery can be sold to the Rimalons today for $4.9 million. Kimbo’s current statement of financial position shows net fixed assets of $3.7 million, current liabilities of $1.1 million, and net working capital of $380,000. If all the current assets were liquidated today, the company would receive $1.6 million cash. What is the book value of Kimbo’s assets today? What is the market value
. Market Values and Book Values (LO1) Kimbo Widgets Inc. purchased new cloaking machinery three years ago for $7 million. The machinery can be sold to the Rimalons today for $4.9 million. Kimbo’s current statement of financial position shows net fixed assets of $3.7 million, current liabilities of $1.1 million, and net working capital of $380,000. If all the current assets were liquidated today, the company would receive $1.6 million cash. What is the book value of Kimbo’s assets today? What is the market value
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
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5. Market Values and Book Values (LO1) Kimbo Widgets Inc. purchased new cloaking machinery three years ago for $7 million. The machinery can be sold to the Rimalons today for $4.9 million. Kimbo’s current statement of financial position shows net fixed assets of $3.7 million, current liabilities of $1.1 million, and net working capital of $380,000. If all the current assets were liquidated today, the company would receive $1.6 million cash. What is the book value of Kimbo’s assets today? What is the market value?
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