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Klingon Cruisers, Inc., purchased new cloaking machinery five years ago for $15 million. The machinery can be sold to the Romulans today for $14.3 million. Klingon's current balance sheet shows net fixed
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43 votes
Klingon Cruisers, Inc., purchased new cloaking machinery five years ago for $15 million. The machinery can be sold to the Romulans today for $14.3 million. Klingon's current balance sheet shows net fixed assets of $12 million, current liabilities of $840,000, and net working capital of $223,000. If all the current accounts were liquidated today, the company would receive $1.05 million cash. What is the book value of Klingon's assets today

User Jacob Walls
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1 Answer

15 votes
15 votes

Answer: $13,063,000

Step-by-step explanation:

The book value of Klingon's assets today will be:

Net working capital = $223,000

Add: Current liabilities = $840,000

Current assets = $1,063,000

Add: Net fixed asset = $12,000,000

Book value of assets = $13,063,000

Therefore, the book value of the assets will be $13,063,000.

User Wako
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