Get correct answer general accounting Klingon Cruisers, Inc., purchased new cloaking machinery four years ago for $15 million. The machinerycan be sold to the Romulans today for $14.2 million. Klingon's current balance sheet shows net fixedassets of $12 million, current liabilities of $880,000, and net working capital of $225,000. If all thecurrent assets were liquidated today, the company would receive $1.07 million cash.a. What is the book value of Klingon s total assets today?b. What is the market value of Klingon's total assets today?

Answered: Image /qna-images/answer/d836be1c-aa8c-40c9-91ba-509c67df5537.jpg

Answered: Klingon Cruisers, Inc., purchased new…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Kimbo Widgets Inc. purchased new cloaking machinery five years ago for $5 million. The machinery can be sold to the Rimalons today for $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. (Do not round intermediate calculations. Enter the answers in dollars, not millions of dollars, i.e. 1,234,567. Omit $ sign in your response.) What is the book value of Kimbo's total assets today? Total asset book value $ What is the market value? Total asset market value
general account
On December 1, 2024, Microsoft Corporation purchased a new cloud computing server farm for $15 million. The company paid $3 million in cash and financed the remaining $12 million with a 5-year loan at an annual interest rate of 4%, with interest payable annually on December 1. The server farm is expected to have a useful life of 7 years with no salvage value. Microsoft uses the straight-line method for depreciation. Additionally, the company incurred $500,000 in installation and testing costs, which were paid in cash. Record the journal entries for: The purchase and financing of the server farm The payment of installation and testing costs The adjusting entry for depreciation on December 31, 2024 The adjusting entry for accrued interest on December 31, 2024
Teitelbaum Corp. plans to buy equipment costing $880,000. In connection with this transaction, old equipment having a book value of $140,000 will be sold for $210,000. Annual cash flow returns from this new investment are estimated at $370,000 before taxes. Depreciation on the new equipment will be $88,000 each year for the next 10 years. No salvage value is expected on this new equipment. No further depreciation can be taken on the old equipment that will be sold. The income tax rate is 30 percent. Determine the NPV of the new investment using a discount rate of 20%: $ ______________
is planning to acquire a new machine at a total cost of P360,000. The estimated life of the machine is 6 years with no salvage value. The straight-line method of depreciation will be used. NUBD estimates that the annual cash flow from operations, before income taxes, from using this machine amounts to P90,000. Assume that NUBD’s cost of capital is 8% and the income tax rate is 40%. (Use 3 decimal places for the PV factors)What would be the net present value?
Johnson Wholesale Corporation has purchased a new piece of equipment for $644,000, with $46,000 of that total being costs for installation. After discussions with its accounting firm the company plans to depreciate the installation costs straight-line over 5 years. The cost of capital is 7.5% and the Tax Rate is 22%. Rounded to the nearest dollar, what is the present value of the cost of the equipment?
Vandezande Incorporated is considering the acquisition of a new machine that costs $461,000 and has a useful life of 5 years with no salvage value. The ncremental net operating income and incremental net cash flows that would be produced by the machine are (ignore income taxes.): Incremental Net Operating Income $ 69,000 $ 75,000 Incremental Net Cash Flows $ 149,000 $ 150,000 $ 181,000 $ 151,000 $ 153,000 Year 1 Year 2 Year 3 Year 4 Year 5 Assume cash flows occur uniformly throughout a year except for the initial investment. The payback period of this investment is closest to: (Round your answer to 1 decimal place.) $ 86,000 $ 49,000 $ 91,000
Zhang Company is considering the purchase of a new machine. Its invoice price is $200,000, freightcharges are estimated to be $4,000, and installation costs are expected to be $6,000. Salvage value ofthe new machine is expected to be zero after a useful life of 4 years. Existing equipment could beretained and used for an additional 4 years if the new machine is not purchased. At that time, thesalvage value of the equipment would be zero. If the new machine is purchased now, the existingmachine would be scrapped. Zhang’s accountant, Victor Wang, has accumulated the following dataregarding annual sales and expenses with and without the new machine.Without the new machine, Zhang can sell 10,000 units of product annually at a per unit selling price of$100. If the new unit is purchased, the number of units produced and sold would increase by 25%, andthe selling price would remain the same.The new machine is faster than the old machine, and it is more efficient in its usage of materials.…
Hayden Company is considering the acquisition of a machine that costs $429,000. The machine is expected to have income of $71,400. The estimated cash payback period for the machine is (round to one decimal place) O a. 7.2 years Ob. 6.0 years O c. 1.2 years O d. 5.1 years useful life of 6 years, a negligible residual value, an annual net cash inflow of $84,000, and annual operating
Acme Ltd, a scrap metal dealer, is considering the acquisition of a 'Roadrunner' metal compactor at the cost of $25,000. The compactor is estimated to have zero value at the end of its five-year life. It will return the following annual net cash flows. Year 1 2 3 4 5 O $4,977 O - $4,977 O $6,652 Net cash flow ($) O -$6,652 6000 10,000 12,000 Depreciation is $5000 per annum and the company tax rate is 40 per cent. Compute the project's NPV. If the project's after-tax required rate of return is 8 per cent per annum, should the project be adopted? 15,000 7000
Sunland Inc. wants to replace its current equipment with new high-tech equipment. The existing equipment was purchased 5 years ago at a cost of $122,000. At that time, the equipment had an expected life of 10 years, with no expected salvage value. The equipment is being depreciated on a straight-line basis. Currently, the market value of the old equipment is $40,100. The new equipment can be bought for $175,880, including installation. Over its 10-year life, it will reduce operating expenses from $193,900 to $145,000 for the first six years, and from $204,800 to $191,300 for the last four years. Net working capital requirements will also increase by $20,700 at the time of replacement. It is estimated that the company can sell the new equipment for $24,900 at the end of its life. Since the new equipment's cash flows are relatively certain, the project's cost of capital is set at 9 %, compared with 15% for an average - risk project. The firm's maximum acceptable payback period is 5…
Kent Corp. is considering the purchase of a new piece of equipment, which would have an initial cost of $509,000, a 7-year life, and $150,000 salvage value. The increase in cash flow each year of the equipment's life would be as follows: Year 1 $ 102,000 Year 2 $ 94,000 Year 3 $ 92,000 Year 4 $ 81,000 Year 5 $ 78,000 Year 6 $ 73,000 Year 7 $ 67,000 What is the payback period? Multiple Choice 6.06 years 5.39 years 5.85 years 5.88 years

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS