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Mommy Hai-dee, Inc. as of yearend of 2019 has a Total Working Capital of Php 3,000,000.00 and with a Current ratio of 2:1. Non-current asset balance is Php 2,000,000.00 comprised of Fixed Asset. There is no long-term debt with debt ratio of only 0.25:1. Using Book Value Method, what is the minimum value it can sell the 15% of the business?   choices: a. 450,000 b. 550,000 c. 400,000 d. 500,000

Mommy Hai-dee, Inc. as of yearend of 2019 has a Total Working Capital of Php 3,000,000.00 and with a Current ratio of 2:1. Non-current asset balance is Php 2,000,000.00 comprised of Fixed Asset. There is no long-term debt with debt ratio of only 0.25:1. Using Book Value Method, what is the minimum value it can sell the 15% of the business?   choices: a. 450,000 b. 550,000 c. 400,000 d. 500,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Mommy Hai-dee, Inc. as of yearend of 2019 has a Total Working Capital of Php 3,000,000.00 and with a Current ratio of 2:1. Non-current asset balance is Php 2,000,000.00 comprised of Fixed Asset. There is no long-term debt with debt ratio of only 0.25:1. Using Book Value Method, what is the minimum value it can sell the 15% of the business?

 

choices:

a. 450,000

b. 550,000

c. 400,000

d. 500,000

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