ABC Corporation has P5,000,000 total assets, P500,000 gross working capital, P200,000 net working capital, and P1,500,000 of noncurrent liabilities. The gross working capital can be sold only at 80% of book value. The noncurrent assets are equal to their market values except for a building (book value=P500,000) and an equipment (book value= P300,000). They are 75% depreciated. The building has the following relevant information. Component Foundation Floor Walls Ceiling Water, electrical and heating system Square Footage 100.00 3,000.00 900.00 1,500.00 1,000.00 Cost to Reproduce 1,000.00 100,000.00 500.00 1,500,000.00 300.00 270,000.00 400.00 600,000.00 700.00 Total Cost to Reproduce Total For the equipment, a 1.25 index can be used to update its value. Based on the above, what is the value of the equity of the entity? 700,000.00 3,170,000.00
ABC Corporation has P5,000,000 total assets, P500,000 gross working capital, P200,000 net working capital, and P1,500,000 of noncurrent liabilities. The gross working capital can be sold only at 80% of book value. The noncurrent assets are equal to their market values except for a building (book value=P500,000) and an equipment (book value= P300,000). They are 75% depreciated. The building has the following relevant information. Component Foundation Floor Walls Ceiling Water, electrical and heating system Square Footage 100.00 3,000.00 900.00 1,500.00 1,000.00 Cost to Reproduce 1,000.00 100,000.00 500.00 1,500,000.00 300.00 270,000.00 400.00 600,000.00 700.00 Total Cost to Reproduce Total For the equipment, a 1.25 index can be used to update its value. Based on the above, what is the value of the equity of the entity? 700,000.00 3,170,000.00
Chapter9: Capital Budgeting And Cash Flow Analysis
Section: Chapter Questions
Problem 1P
Related questions
Question
![ABC Corporation has P5,000,000 total assets, P500,000 gross working capital, P200,000
net working capital, and P1,500,000 of noncurrent liabilities. The gross working capital
can be sold only at 80% of book value. The noncurrent assets are equal to their market
values except for a building (book value = P500,000) and an equipment (book value =
P300,000). They are 75% depreciated. The building has the following relevant
information.
Square
Cost to
Total Cost to
Component
Footage
Reproduce
Reproduce
Foundation
100.00 P
1,000.00 P 100,000.00
Floor
3,000.00
500.00
1,500,000.00
Walls
900.00
300.00
270,000.00
Ceiling
1,500.00
400.00
600,000.00
Water, electrical and
heating system
1,000.00
700.00
700,000.00
P3,170,000.00
Total
For the equipment, a 1.25 index can be used to update its value.
Based on the above, what is the value of the equity of the entity?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F823abed2-8a1e-432f-bf0d-4d4d57c5d6db%2Fe6153e86-47fd-4ae0-a793-bdf11a70cfd4%2Fknqikk8_processed.png&w=3840&q=75)
Transcribed Image Text:ABC Corporation has P5,000,000 total assets, P500,000 gross working capital, P200,000
net working capital, and P1,500,000 of noncurrent liabilities. The gross working capital
can be sold only at 80% of book value. The noncurrent assets are equal to their market
values except for a building (book value = P500,000) and an equipment (book value =
P300,000). They are 75% depreciated. The building has the following relevant
information.
Square
Cost to
Total Cost to
Component
Footage
Reproduce
Reproduce
Foundation
100.00 P
1,000.00 P 100,000.00
Floor
3,000.00
500.00
1,500,000.00
Walls
900.00
300.00
270,000.00
Ceiling
1,500.00
400.00
600,000.00
Water, electrical and
heating system
1,000.00
700.00
700,000.00
P3,170,000.00
Total
For the equipment, a 1.25 index can be used to update its value.
Based on the above, what is the value of the equity of the entity?
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