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lana [24]
3 years ago
6

The Widget Co. purchased all of its fixed assets three years ago for $6 million. These assets can be sold today for $3 million.

The current balance sheet shows net fixed assets of $2,500,000, current liabilities of $1,375,000, and net working capital of $725,000. If all the current assets were liquidated today, the company would receive $1.8 million in cash. The market value of the company’s total assets today is $____________(in dollars, not millions).
Business
1 answer:
oksano4ka [1.4K]3 years ago
8 0

Answer:

$4,800,000

Explanation:

Widget corporation purchased all of its fixed assets three years ago for $6 million

These assets can be sold today for $3 million

The company receives $1.8 million in cash after liquidation of current assets

Therefore the market value of the company's total assets today can be calculated as follows

Market value = $3,000,000 + $1,800,000

= $4,800,000

Hnence the company's market value for today is $4,800,000

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