- X i Data Table Gallinas Industries Balance Sheet December 31 Assets $ 50,000 $ 89,740 70,510 44,870 44,870 83,330 89,740 $ 179,480 Cash Marketable securities Accounts receivable Inventories Total current assets Land and buildings (net) Machinery and equipment Total fixed assets (net) $ 293,580 Liabilities and Stockholders' Equity Accounts payable Notes payable Accrued wages Total current liabilities Long-term debt Preferred stock Common stock (10,000 shares) Retained earnings Total liabilities and stockholders' equity $ 134,610 $ 76,920 $ 130,283 217,137 153,840 96,150 $ 347,420 $ 641,000 $ 641,000 Total assets Print Done 1. Preferred stock can be liquidated at book value. 2. Accounts receivable and inventories can be liquidated at 93% of book value. 3. The firm has 10,000 shares of common stock outstanding. 4. All interest and dividends are currently paid up. 5. Land and buildings can be liquidated at 135% of book value. 6. Machinery and equipment can be liquidated at 72% of book value. 7. Cash and marketable securities can be liquidated at book value. Given this information, answer the following: a. What is Gallinas Industries' book value per share? b. What is its liquidation value per share? c. Compare, contrast, and discuss the values found in parts a and b. a. Gallinas Industries' book value per share is $ (Round to the nearest cent.) b. Gallinas Industries' liquidation value per share is $ (Round to the nearest cent.) c. Compare, contrast, and discuss the values found in parts a and b. (Select the best answer below.) A. Liquidation value is below book value per share and represents the maximum value for the firm. It is possible for liquidation value to be greater than book value if assets are undervalued. O B. Liquidation value is below book value per share and represents the minimum value for the firm. It is possible for liquidation value to be greater than book value if assets are undervalued. O c. Liquidation value is greater than book value per share and represents the minimum value for the firm. It is possible for liquidation value to be greater than book value if assets are undervalued. OD. Liquidation value is below book value per share and represents the maximum value for the firm. It is possible for liquidation value to be greater than book value if assets are overvalued