Question: Recently, the owner of Martha's Wares encountered severe legal problems and is trying to sell her business. The company built a building at a cost

Recently, the owner of Martha's Wares encountered severe legal problems and is trying to sell her business. The company built a building at a cost of $

1, 240, 000

that is currently appraised at $

1, 440, 000 .

The equipment originally cost $

720, 000

and is currently valued at $

467, 000 .

The inventory is valued on the balance sheet at $

410, 000

but has a market value of only one

-

half of that amount. The owner expects to collect

98

percent of the $

225, 200

in accounts receivable. The firm has $

10, 500

in cash and owes a total of $

1, 440, 000 .

The legal problems are personal and unrelated to the actual business. What is the market value of this firm?

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