Question: Now assume you were interested in developing a what if scenario. Suppose the numbers were reduced for the following year for the ending market values

Now assume you were interested in developing a "what if” scenario. Suppose the numbers were reduced for the following year for the ending market values of land, buildings and improvements, and machinery fall by 20% but all else stayed the same. Recalculate the balance sheet and financial ratios for this scenario.

1. what is the market ending balance for machinery and equipment?

2. what is the market ending balance for the buildings and improvements?

3. what is the market ending balance for real estate/land?

ORIGINAL BALANCE SHEET BELOW:

Market BeginningMarket EndingMarket Net Change
Machinery and Equipment300,000300,0000
Buildings and Improvements100,000100,0000
Real Estate/Land1,428,0001,462,50034,500

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