Klingon Widgets, Inc., purchased new cloaking machinery five years ago for $10 million. The machinery can be sold to the Romulans today for $9.4 million. Klingon’s current balance sheet shows net fixed assets of $8 million, current liabilities of $810,000, and net working capital of $247,000. If all the current assets and current liabilities were liquidated today, the company would receive $1.14 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. Enter your answer in dollars, not millions of dollars, e.g., 1,234,567.)

Q: Nick’s Novelties, Incorporated, is considering the purchase of new electronic games to place in its…

A: The payback period is a financial term that measures how long it takes for an investment to generate…

Q: Kent Corp. is considering the purchase of a new piece of equipment, which would have an initial cost…

A: PAYBACK PERIOD Payback Period is one the Important Traditional Capital Budgeting Technique. Payback…

Q: The Brendan Excavation Company replaced an old machine 11 years ago with a new one. They sold the…

A: Annual depreciation tax shield Annual depreciation tax shield is the annual depreciation times the…

Q: Your company has spent $380,000 on research to develop a new computer game. The firm is planning to…

A: Amount to be depreciated= 58000+6800= 64800$Depreciation for first year= 64800*10%= 6480

Q: Klingon Widgets, lnc., purchased new cloaking machinery four years ago for $12 million. The…

A: - Original cost of machinery: $12 million- Current market value of machinery: $10.8 million- Net…

Q: Dorothy & George Company is planning to acquire a new machine at a total cost of $37,500. The…

A: NPV is also known as Net Present Value. It is a capital budgeting technique which helps in decision…

Q: plc purchased new machinery three years ago for £4 million. The machinery can be sold today for £2…

A: In the first step, we will determine the book value by combining the book values of current assets…

Q: Covington Corporation purchased a vibratory finishing machine for $24,000 in year 0. The useful life…

A: The discounted payback period is a variation of the traditional payback period that takes into…

Q: Patterson Corporation is considering the purchase of a new piece of equipment, which would have an…

A: Payback period is concept of capital budgeting. Payback period is the period in which initial…

Q: Wright Corp. Is considering the purchase of a new plece of equipment, which would have an Initial…

A: The question is based on the concept of Financial Management. Payback period is the period in which…

Q: KADS, Incorporated has spent $450,000 on research to develop a new computer game. The firm is…

A: Asset cost $305,000Less: Depreciation charged ($171,625)WDV of machine at the time of sale…

Q: Five Star is considering leasing a building and buying the necessary equipment to operate a public…

A: Differential analysis is something that helps in choosing one best alternative out of various…

Q: Allen Air Lines must liquidate some equipment that is being replaced. The equipment originally cost…

A: Salvage value refers to the residual value, that is, the value at which the equipment can be traded…

Q: es Hard Hat Company is in the process of purchasing several large pieces of equipment from Machine…

A: 📍 Approach to solving the question: To determine the best financing alternative for Hard Hat…

Q: What will the cash flows for this project be? Note: Negative amounts should be indicated by a minus…

A: The amount of cash available to a corporation after covering the costs of doing business is measured…

Q: KADS, Inc. has spent $390,000 on research to develop a new computer game. The firm is planning to…

A: The initial investment cost of machine is $190,000. The installation cost is $49,000. The cash flow…

Q: KADS, Inc. has spent $400,000 on research to develop a new computer game. The firm is planning to…

A: Net present value is the excess of present value of inflows to the outflows. NPV = Present value of…

Q: KADS, Inc. has spent $360,000 on research to develop a new computer game. The firm is planning to…

A: Variables in the question:Cost of machine=$160,000 Shipping and installation costs of the…

Q: Vandezande Incorporated is considering the acquisition of a new machine that costs $461,000 and has…

A: Payback is a capital budgeting tool which is used to find the time required to recover the invested…

Q: Falkland, Inc., is considering the purchase of a patent that has a cost of $51,000 and an estimated…

A: Net Present Value(NPV) is excess of PV of inflows over PV of outflows related to investment proposal…

Q: KADS, Incorporated has spent $460,000 on research to develop a new computer game. The firm is…

A: Free cash flow is the net operating cash flow available for the distribution of profits. It is…

Q: Vandezande Incorporated is considering the acquisition of a new machine that costs $470,000 and has…

A: Given: Year Net cash flows 0 -$470,000 1 $156,000 2 $163,000 3 $175,000 4 $160,000 5…

Q: Raghubhai

A: KADS, Incorporated - New Computer Game Cash FlowsHere's a breakdown of the cash flows for KADS,…

Q: [The following information applies to the questions displayed below.j Nick's Novelties,…

A: Payback period refers to the time spent to recover the initial amount invested by the investors…

Q: Muffins masonry incs balance sheet list next fixed assets as $ 14 million. The fixed assets could…

A: Net working capital = Current assets - Current liabilities

Q: Two years ago, Capricorn Inc. purchased an Asset A for $66,000. The asset yields annual operating…

A: We need to calculate net present value (NPV)of replacement machine which is the difference  between…

Q: Six years ago, ABC Company invested $45,525 in a new machinery. The investment in net working…

A: The selling price for the machine is $19,722.The book value of the machine is $12,039.The gain made…

Q: In the Wall Bricks, Inc.’s balance sheet lists net fixed asset as $12 million. The fixed assets…

A: SOLUTION : Book Value of Net Fixed Assets as per Balance sheet = $12 million - Book Value of Current…

Q: Falkland, Inc., is considering the purchase of a patent that has a cost of $51,000 and an estimated…

A: NPV is an abbreviation for "Net Present Value." It is a financial indicator that compares the…

Q: c-1. What is the NPV of the replacement project? (Do not round intermediate calculations.Round your…

A: Net Present Value: It is a tool used in Capital Budgeting and  current value of all future cash…

Q: A company purchased a machine 6 years ago for $500m and a salvage value of $30m. The machine has a…

A: An old equipment is disposed of with an aim to improve the sales capacity or to enhance the…

Q: ​Intella Manufacturing, Inc. has only one plant asset used in production. The asset had a cost of…

A: As per IAS 36 Impairment of Assets, An Impairment loss will be recognized when carrying Amount of…

Q: KADS, Inc. has spent $400,000 on research to develop a new computer game. The firm is planning to…

A: The cash flow statement refers to the statement showing the summary of the cash and cash equivalent…

Q: KADS, Inc., has spent $400,000 on research to develop a new computer game. The firm is planning to…

A: Cash flows represent the amount of cash produced by the company from its normal business operations.

Q: KADS, Inc. has spent $440,000 on research to develop a new computer game. The firm is planning to…

A: Cash flow shows the amount of cash inflow and outflow from the company. The cash flow statement…

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.