Muffin’s Masonry, Inc.’s, balance sheet lists net fixed assets as $24.00 million
ID: 2731648 • Letter: M
Question
Muffin’s Masonry, Inc.’s, balance sheet lists net fixed assets as $24.00 million. The fixed assets could currently be sold for $39.00 million. Muffin’s current balance sheet shows current liabilities of $10.50 million and net working capital of $9.50 million. If all the current accounts were liquidated today, the company would receive $7.75 million cash after paying the $10.50 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.)
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.)
Explanation / Answer
BOOK VALUE MARKET VALUE
FIXED ASSETS $24 $39
CURRENT ASSETS $20 $18.25
(WORKING CAPITAL+CURRENT LIABILITIES) ($10.50+$9.50) ( $7.75+$10.50)
TOTAL AMOUNT IN MILLION $44 $57.25
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