Question

yas net fixed assets as $15 million. The fixed assets could currently be sold for $21 million. Muffin’s current balance sheet shows current liabilities of $6.0 million and net working capital of $5.0 million. If all the current accounts were liquidated today, the company would receive $7.30 million cash after paying the $6.0 million in current liabilities. What is the book value of Muffin’s Masonry’s assets today and the market value of these assets?ur full-service brokerage firm charges $115 per stock trade.How much money do you receive after selling 145 shares of Nokia Corporation (NOK), which trades at $16.53? (

Answer 1

Book Value = $26 million

Market value = $34.3 million

Step-by-step explanation:

The computation of book value and the market value is shown below:-

For computing the book value first we need to find out the current assets

Current assets = Working capital + Current liabilities

= $5.0 million + $6.0 million

= $11.0 million

Total book value = Current assets + Fixed assets

= $11.0 million + $15 million

= $26 million

For computing the market value first we need to find out the current assets

Current assets = Cash + Current liabilities

= $7.30 million + $6.0 million

= 13.3 million

Total market value = Fixed assets + Current assets

= $21 million + 13.3 million

= $34.3 million