In: Finance
Muffin’s Masonry, Inc.’s, balance sheet lists net fixed assets as $33.00 million. The fixed assets could currently be sold for $57.00 million. Muffin’s current balance sheet shows current liabilities of $15.00 million and net working capital of $14.00 million. If all the current accounts were liquidated today, the company would receive $8.20 million cash after paying the $15.00 million in current liabilities. |
What is the book value of Muffin’s Masonry’s assets today and the market value of these assets? (Enter your answers in millions of dollars rounded to 2 decimal places.) |
BOOK VALUE | MARKET VALUE | ||
Current assets | $ m | $ m | |
Fixed assets | m | m | |
Total | $ m | $ m | |
Book value | Market value | ||
Net fixed asset | 33 | 57 | |
Current liability | |||
as per balance sheet | 15 | ||
Net working capital | 14 | ||
Working capital | = Current Asset - Current liabilities | ||
14= | Current Assets - 15 | ||
Current Assets= | 29 | ||
Sale price of current assets= | 8.20+15 | ||
Sale price of current assets= | 23.20 | ||
Book value | Market value | ||
Fixed Assets | 33.00 | 57.00 | |
Current Assets | 29.00 | 23.20 | |
Total | 62.00 | 80.20 | |