Question

In: Finance

Muffin’s Masonry, Inc.’s, balance sheet lists net fixed assets as $33.00 million. The fixed assets could...

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  

Solutions

Expert Solution

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

jeff jeffy answered 3 years ago
Next > < Previous

Related Solutions

Ava’s SpinBall Corp. lists fixed assets of $32 million on its balance sheet. The firm’s fixed...
Ava’s SpinBall Corp. lists fixed assets of $32 million on its balance sheet. The firm’s fixed assets have recently been appraised at $56 million. Ava’s SpinBall Corp.’s balance sheet also lists current assets at $25 million. Current assets were appraised at $46 million. Current liabilities’ book and market values stand at $7 million and the firm’s book and market values of long-term debt are $28 million. Calculate the book and market values of the firm’s stockholders’ equity. Construct the book...
1 Building a Balance Sheet  KCCO, Inc. has current assets of $5,300, net fixed assets of $23,900,...
1 Building a Balance Sheet  KCCO, Inc. has current assets of $5,300, net fixed assets of $23,900, current liabilities of $4,100, and long-term debt of $10,600.  What is the value of shareholder’s equity for this firm? How much is net working capital?
The balance sheet of MT Co. shows current assets of $14,000, net fixed assets of $21,800,...
The balance sheet of MT Co. shows current assets of $14,000, net fixed assets of $21,800, current liabilities of $4,300, long-term debt of $2,600, and equity of $28,900. The balance sheet of LF Inc. has current assets of $4,700, net fixed assets of $8,100, current liabilities of $2,200, long-term debt of $1,200, and equity of $9,400. The market value of LF's fixed assets is $14,100. MT purchases LF for $20,000 and raises the funds through an issue of long-term debt....
Tulip Inc.’s balance sheet is as follows: Balance Sheet January 1 December 31 Assets: Cash $...
Tulip Inc.’s balance sheet is as follows: Balance Sheet January 1 December 31 Assets: Cash $ 12,000 $ 7,000 Accounts receivable 2,000 11,000 Inventory 24,000 39,000 Long-term investments 9,000 23,000 Property, plant, & equipment 100,000 83,000 Less accumulated depreciation (62,000) (66,000) Total $ 85,000 $97,000 Liabilities and stockholders’ equity: Accounts payable $ 28,000 $ 9,000 Income taxes payable 2,000 1,000 Bonds payable 10,000 16,000 Common stock 30,000 42,000 Retained earnings 15,000 29,000 Total $85,000 $97,000 Tulip reported net income of...
A company’s Balance Sheet (in millions) Assets Liabilities & Equity Current $20 Net Fixed $80 Bonds...
A company’s Balance Sheet (in millions) Assets Liabilities & Equity Current $20 Net Fixed $80 Bonds ($1000 Par) 40 Preferred stocks ($100 Par) 20 Total $100 Common Stock ($1 par) 40 Total $100 The company's bonds have 15 years to mature, pay 12% coupon rate semi-annually and comparable bonds' YTM is 14%. The market price of the common stock is $3.25 per share. The most recent dividend on the common stock was $0.85. The company’s applicable tax rate is 30%....
Analyze S&J Plumbing, Inc.'s balance sheet below: Assets Liabilities Cash $100 Notes Payable-bank $200 Net Account...
Analyze S&J Plumbing, Inc.'s balance sheet below: Assets Liabilities Cash $100 Notes Payable-bank $200 Net Account Receivable $400 Account Payable $300 Inventory $200 Accrued Expenses $100 Total Current Assets $700 Total Current Liabilities $600 Calculate the following: Current ratio Quick ratio Net working capital Write a report of 2-3 pages that discusses the liquidity of S & J Plumbing Incorporated.
Southwestern Wear Inc. has the following balance sheet: Current assets $1,875,000 Accounts payable $375,000 Fixed assets...
Southwestern Wear Inc. has the following balance sheet: Current assets $1,875,000 Accounts payable $375,000 Fixed assets 1,875,000 Notes payable 750,000 Subordinated debentures 750,000 Total debt $1,875,000 Common equity 1,875,000 Total assets $3,750,000 Total liabilities and equity $3,750,000 The trustee's costs total $238,250, and the firm has no accrued taxes or wages. Southwestern has no unfunded pension liabilities. The debentures are subordinated only to the notes payable. If the firm goes bankrupt and liquidates, how much will each class of investors...
Southwestern Wear Inc. has the following balance sheet: Current assets $1,875,000 Accounts payable $375,000 Fixed assets...
Southwestern Wear Inc. has the following balance sheet: Current assets $1,875,000 Accounts payable $375,000 Fixed assets 1,875,000 Notes payable 750,000 Subordinated debentures 750,000 Total debt $1,875,000 Common equity 1,875,000 Total assets $3,750,000 Total liabilities and equity $3,750,000 The trustee's costs total $263,750, and the firm has no accrued taxes or wages. Southwestern has no unfunded pension liabilities. The debentures are subordinated only to the notes payable. If the firm goes bankrupt and liquidates, how much will each class of investors...
Southwestern Wear Inc. has the following balance sheet: Current assets $1,875,000 Accounts payable $375,000 Fixed assets...
Southwestern Wear Inc. has the following balance sheet: Current assets $1,875,000 Accounts payable $375,000 Fixed assets 1,875,000 Notes payable 750,000 Subordinated debentures 750,000 Total debt $1,875,000 Common equity                    1,875,000     Total assets $3,750,000 Total liabilities and equity $3,750,000 The trustee's costs total $323,750, and the firm has no accrued taxes or wages. Southwestern has no unfunded pension liabilities. The debentures are subordinated only to the notes payable. If the firm goes bankrupt and liquidates, how much will each class of investors receive...
Southwestern Wear Inc. has the following balance sheet: Current assets $1,875,000 Accounts payable $375,000 Fixed assets...
Southwestern Wear Inc. has the following balance sheet: Current assets $1,875,000 Accounts payable $375,000 Fixed assets 1,875,000 Notes payable 750,000 Subordinated debentures 750,000 Total debt $1,875,000 Common equity 1,875,000 Total assets $3,750,000 Total liabilities and equity $3,750,000 The trustee's costs total $248,500, and the firm has no accrued taxes or wages. Southwestern has no unfunded pension liabilities. The debentures are subordinated only to the notes payable. If the firm goes bankrupt and liquidates, how much will each class of investors...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT