Lew's Auto Repair has cash of $18,600, accounts receivable of $34,500, accounts payable of $28,900, inventory of $97,800, long-term debt of $142,000, and net fixed assets of $363,800. The firm estimates that if it wanted to cease operations today it could sell the inventory for $85,000 and the fixed assets for $349,000. The firm could collect 100 percent of its receivables as they are secured. What is the market value of the firm's assets? $458,200 $487,100 $374,200 $332,800 $495,500
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- Muffin’s Masonry, Inc.’s, balance sheet lists net fixed assets as $26 million. The fixed assets could currently be sold for $43 million. Muffin’s current balance sheet shows current liabilities of $11.5 million and net working capital of $10.5 million. If all the current accounts were liquidated today, the company would receive $7.85 million cash after paying the $11.5 million in current liabilities. What is the book value of Muffin’s Masonry’s assets today and the market value of these assets? (Enter your answer in millions of dollars rounded to 2 decimal places.) BOOK VALUE MARKET VALUE (in millions of dollars) Current assets Fixed assets TotalMuffin’s Masonry, Inc.’s, balance sheet lists net fixed assets as $19 million. The fixed assets could currently be sold for $29 million. Muffin’s current balance sheet shows current liabilities of $8.0 million and net working capital of $7.0 million. If all the current accounts were liquidated today, the company would receive $7.50 million cash after paying the $8.0 million in current liabilities. What is the book value of Muffin’s Masonry’s assets today and the market value of these assets? (Enter your answer in millions of dollars rounded to 2 decimal places.) current assets fixed assets totalMuffin's Masonry, Inc.'s balance sheet lists net fixed assets as $33 million. The fixed assets could currently be sold for $57 million. Muffin's current balance sheet shows current liabilities of $15.0 million and net working capital of $14.0 million. If all the current accounts were liquidated today, the company would receive $8.20 million cash after paying the $15.0 million in current liabilities.What is the book value of Muffin's Masonry's assets today and the market value of these assets?
- MansukhLloyd Inc. has sales of $600,000, a net income of $36,000, and the following balance sheet: ROE will -Select- Cash Receivables Inventories by X $ 652,800 Long-term debt 367,200 Common equity $1,020,000 Total liabilities and equity The new owner thinks that inventories are excessive and can be lowered to the point where the current ratio is equal to the industry average, 2x, without affecting sales or net income. If inventories are sold and not replaced (thus reducing the current ratio to 2x), if the funds generated are used to reduce common equity (stock can be repurchased at book value), and if no other changes occur, by how much will the ROE change? Do not round intermediate calculations. Round your answer to two decimal places. percentage points. $ Total current assets Net fixed assets Total assets 70,380 Accounts payable 174,420 Notes payable to bank 408,000 Total current liabilities What will be the firm's new quick ratio? Do not round intermediate calculations. Round your answer…Lloyd Inc. has sales of $150,000, a net income of $16,500, and the following balance sheet: Cash Receivables Inventories Total current assets Net fixed assets Total assets The new owner thinks that inventories are excessive and can be lowered to the point where the current ratio is equal to the industry average, 2.5x, without affecting sales or net income. If inventories are sold and not replaced (thus reducing the current ratio to 2.5x), if the funds generated are used to reduce common equity (stock can be repurchased at book value), and if no other changes occur, by how much will the ROE change? Do not round intermediate calculations. Round your answer to two decimal places. percentage points. s new quick ratio? Do not round intermediate calculations. Round your answer to two decimal places. ROE wil ✔ -Select- y increase decrease What w $ 19,125 Accounts payable 70,500 Notes payable to bank 180,000 Total current liabilities $269,625 Long-term debt 105,375 Common equity $375,000 Total…
- Southwestern Wear Inc. has the following balance sheet: The trustees costs total 281,250, and the firm has no accrued taxes or wages. The debentures are subordinated only to the notes payable. If the firm goes bankrupt and liquidates, how much will each class of investors receive if a total of 2.5 million is received from sale of the assets?The balance sheet and income statement shown below are for Koski Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over. Balance Sheet (Millions of $) Assets 2018 Cash and securities $3,000 Accounts receivable 15,000 Inventories 18,000 Total current assets $36,000 Net plant and equipment $24,000 Total assets $60,000 Liabilities and Equity Accounts payable $18,630 Accruals 8,370 Notes payable 6,000 Total current liabilities $33,000 Long-term bonds $9,000 Total liabilities $42,000 Common stock $5,040 Retained earnings 12,960 Total common equity $18,000 Total liabilities and equity $60,000 Income Statement (Millions of $) 2018 Net sales $84,000 Operating costs except depreciation 78,120 Depreciation 1,680…The Nelson Company has $1,365,000 in current assets and $525,000 in current liabilities. Its initial inventory level is $375,000, and it will raise funds as additional notes payable and use them to increase inventory. 1-How much can Nelson's short-term debt (notes payable) increase without pushing its current ratio below 2.0? Do not round intermediate calculations. Round your answer to the nearest dollar. $ 2-What will be the firm's quick ratio after Nelson has raised the maximum amount of short-term funds? Do not round intermediate calculations. Round your answer to two decimal places.
- The Nelson Company has $1,352,000 in current assets and $520,000 in current liabilities. Its initial inventory level is $395,000, and it will raise funds as additional notes payable and use them to increase inventory. How much can Nelson's short-term debt (notes payable) increase without pushing its current ratio below 2.0? Do not round intermediate calculations. Round your answer to the nearest dollar. $______________ What will be the firm's quick ratio after Nelson has raised the maximum amount of short-term funds? Do not round intermediate calculations. Round your answer to two decimal places. Quick ratio ____________The Nelson Company has $1,458,000 in current assets and $540,000 in current liabilities. Its initial inventory level is $375,000, and it will raise funds as additional notes payable and use them to increase inventory. a) How much can Nelson's short-term debt (notes payable) increase without pushing its current ratio below 2.2? Do not round intermediate calculations. Round your answer to the nearest dolla b) What will be the firm's quick ratio after Nelson has raised the maximum amount of short-term funds? Do not round intermediate calculations. Round your answer to two decimal placeExcelsior Corporation has the following headings on its December 31, 2019 Balance Sheet: Total Current Assets $200,000 Total Assets $500,000 Total Current Liabilities $91,500 Total Non Current Liabilities $300,000 On January 2020 Excelsior pays off $36,900 in long term debt by transferring title to one of its idle factories to the creditor Required 1: Assume no other transaction in 2020. How much will working capital increase/decrease by when comparing December 2019 with January 2020? $ Required 2: The current ratio of 2019 is: Required 3: Excelsior's financial leverage in 2019 is (calculate it as a debt to equity ratio): Required 4: Excelsior's financial leverage in 2019 is (calculate the Equity Ratio and not the Equity Ratio percentage): Required 5: If sales for 2019 amount to $570,000, the working capital turnover for 2019 is: