---### Klingon Widgets, Incorporated Financial Analysis **Scenario:**Klingon Widgets, Incorporated, purchased new cloaking machinery three years ago for $6 million. The machinery can be sold to the Romulans today for $5.4 million. Klingon's current balance sheet shows net fixed assets of $3.5 million, current liabilities of $945,000, and net working capital of $275,000. If the current assets and current liabilities were liquidated today, the company would receive a total of $1.25 million cash.**Questions:**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?** *(Enter your answer in dollars, not millions of dollars, e.g., 1,234,567.)***To Answer:**Use the following input fields:| | ||---|---|| a. Book value of total assets | \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ | | b. Sum of market value NWC and market value of fixed assets | \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ |**Explanation:** - **Book Value of Total Assets**: This is calculated by summing up the net fixed assets and net working capital. - **Sum of Market Value of NWC and Market Value of Fixed Assets:** This involves adding the market value of the net working capital (NWC) and the up-to-date market value of fixed assets.**Graph/Diagram:** There is no graph or diagram provided with this data, only text and tables to fill in the answers.---### Calculations:**a. Book Value of Total Assets:**- Net Fixed Assets: $3,500,000- Net Working Capital (NWC): $275,000\[ \text{Book Value of Total Assets} = \text{Net Fixed Assets} + \text{Net Working Capital} \]\[ \text{Book Value of Total Assets} = \$3,500,000 + \$275,000 \]\[ \text{Book Value of Total Assets} = \$3,775,000 \]**b. Sum of Market Value

Cost of machine = $6,000,000 Market Value of fixed assets = $5,400,000 Net fixed assets = $3,500,000…

Klingon Widgets, Incorporated, purchased new cloaking machinery three years ago for $6 million. The machinery can be sold to the Romulans today for $5.4 million. Klingon's current balance sheet shows net fixed assets of $3.5 million, current liabilities of $945,000, and net working capital of $275,000. If the current assets and current liabilities were liquidated today, the company would receive a total of $1.25 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? (Enter your answer in dollars, not millions of dellars, e.g.. 1.234 567)

Klingon Widgets, Incorporated, purchased new cloaking machinery three years ago for $6 million. The machinery can be sold to the Romulans today for $5.4 million. Klingon's current balance sheet shows net fixed assets of $3.5 million, current liabilities of $945,000, and net working capital of $275,000. If the current assets and current liabilities were liquidated today, the company would receive a total of $1.25 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? (Enter your answer in dollars, not millions of dellars, e.g.. 1.234 567)

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

Problem 1PS

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