Klingon Widgets, Incorporated, purchased new cloaking machinery three years ago for $5.5 million. The machinery can be sold to the Romulans today for $7.7 million. Klingon's current balance sheet shows net fixed assets of $4.3 million, current liabilities of $860,000, and net working capital of $145,000. If all the current accounts were liquidated today, the company would receive $975,000 cash. 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. 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.
Klingon Widgets, Incorporated, purchased new cloaking machinery three years ago for $5.5 million. The machinery can be sold to the Romulans today for $7.7 million. Klingon's current balance sheet shows net fixed assets of $4.3 million, current liabilities of $860,000, and net working capital of $145,000. If all the current accounts were liquidated today, the company would receive $975,000 cash. 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. 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.
Chapter25: Taxation Of International Transact Ions
Section: Chapter Questions
Problem 25P
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Question
Transcribed Image Text:Klingon Widgets, Incorporated, purchased new cloaking machinery three years ago for $5.5 million. The machinery can
be sold to the Romulans today for $7.7 million. Klingon's current balance sheet shows net fixed assets of $4.3 million,
current liabilities of $860,000, and net working capital of $145,000. If all the current accounts were liquidated today, the
company would receive $975,000 cash.
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.
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.
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