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Calculation of Market Value and Book Value

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Klingon Cruisers, Inc., purchased new cloaking machinery three years ago for $9.5 million. 
The machinery can be sold to the Romulans today for $6.5 million.  Klingon's current balance
sheet shows net fixed assets of $5.2 million, current  liabilities of $2.4 million, and net working
capital of $800,000.  If all the current assets were liquidated today, the company would
receive $2.6 million cash.  What is the book value of Klingon's assets today?  What is the
market value?

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Solution Summary

The attached MS Excel spreadsheet contains detailed illustrations and instructions for calculating the book and market value of assets for Klingon Widgets, Incorporated.

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The attached MS Excel spreadsheet contains detailed illustrations and instructions for completion of the Market Value and Book Value exercise.

Market Value and Book Value

Klingon Cruisers, Inc., purchased new cloaking machinery three years ago for $9.5 million. 
The machinery can be sold to the Romulans today for $6.5 million.  Klingon's current ...

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