Fundamentals of Corporate Finance Ch 1 and 2

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Page 43-44, Chapter 2 5. Klingon Widgets, Inc. Notes Current Assets purch cloaking 3 yrs ago for $6mil (book value) +Net Working Capital $215,000 can sell today for 5.3m (market value) +Current Liability $900,000 net fixed assets 3.2m =Current Assets $1,115,000 current liabilities 900,000 net working capital of 215,000 Book Value of Total Assets if liquidated all assets today = 1.25m = market value +Book Value of Current Assets $1,115,000 what is book value of total assets today? +Book Value of Net Fixed Assets $6,000,000 **Assumimg that the cloaking equip is the only asset- that bothered me- I would like a schedule.** What is market value of total assets today? =Book Value of Total Assets $7,115,000 Book Valye of Klingon's total assets today: $7,115,000 Market Valye of Total Assets +Market Value of Current Assets $1,250,000 +Market Value of Net Fixed Assets $5,300,000 =Market Value of Total Assets $6,550,000 Market Value of Klingon's total assets today: $6,550,000 16. Cornell Corp. Balance Sheet Assets Liabilities and Owner's Equity 2011 2011 Current Assets Current Liabilities Cash $127,000 Accounts Payable $210,000 Accounts Receivable $105,000 Notes Payable $160,000 Inventory $293,000 Total $370,000 Total $525,000 Fixed Assets Long Term Debt $845,000 Net Fixed Assets $1,620,000 Intangible Fixed Assets (Patents, Copyrights) Owner's Equity $630,000 Owner's Equity $282,000 Total $2,250,000 Retained Earnings $1,278,000 Total $1,560,000 Total Assets $2,775,000 Total Liabilities and Owner's Equity $2,775,000 19. Raines Umbrella Corp. 2010

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