For time value of money problems, show your inputs, and tell me what you use for

Question

For time value of money problems, show your inputs, and tell me what you use for the calculations! No work and its wrong = 0 points!

In the Wall Bricks, Inc.’s balance sheet lists net fixed asset as $12 million. The fixed assets could currently be sold for $10 million. Wall Bricks’ current balance sheet shows current liabilities of $4 million and current assets of $6 million. If all the current accounts were liquidated today, the company would receive $1 million cash after paying the $4 million in liabilities. What is the book value of Wall Bricks’ assets today? What is the market value of these assets

Explanation / Answer

Book value = net fixed asset + current assets -  current liabilities = 12 + 6 - 4 = 10m

Market value of assets = Market value of net fixed asset + Market value of current assets

= Market value of net fixed asset + Cash recieved + liabilities paid off

= 10 + 1 + 4 = 15 m

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