Klingon Cruisers, Inc , purchased new cloaking machinery three years ago for $7 million The machinery can be sold to the Romulans today for $5 2 million Klingon 's current balance sheet shows net fixed assets of $4 5 million, current liabilities of $1 8 million, and net working capital of $750,000 ...

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Klingon Cruisers, Inc., purchased new cloaking machinery three years ago for $7 million. The machinery can be

Question:

Klingon Cruisers, Inc., purchased new cloaking machinery three years ago for $7 million. The machinery can be sold to the Romulans today for $5.2 million. Klingon's current shows net fixed assets of $4.5 million, current liabilities of $1.8 million, and net working capital of $750,000. If all the current assets were liquidated today, the company would receive $2.7 million cash. What is the book value of Klingon's assets today? What is the market value?
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...