Joe$$s net working capital is $$200,000$ of which there are $$720,000$ current liabilities

and there are net fixed assets of $$380,000.$ He bought new machines $2$ years ago

for $$600,000$ which can be sold today for $$420,000.$ If he had to liquidate all his

assets today he'd receive $$850,000.$

a$.$ What is the book value of Joe$$s company?

b$.$ What is the market value of Joe$$s company?

c$.$ Explain the difference between book and market value.

d$.$ Why is it important to know these the book and market values of an asset?

e$.$ What is the implication of depreciation on book and market values?

f$.$ How do non$-$cash expenses impact a company$$s profitability?