1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Eva8 [605]
3 years ago
12

Muffin’s Masonry, Inc.’s, balance sheet lists net fixed assets as $18.00 million. The fixed assets could currently be sold for $

27.00 million. Muffin’s current balance sheet shows current liabilities of $7.50 million and net working capital of $6.50 million. If all the current accounts were liquidated today, the company would receive $7.45 million cash after paying the $7.50 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.)

BOOK VALUE MARKET VALUE

Current assets $ m $ m

Fixed assets m m

Total $ m $ m
Business
1 answer:
jeyben [28]3 years ago
8 0

Answer:

                                     Book Value                          Market Value

Current Assets              $14 m                                        $14.95 m

Fixed Assets                  $18 m                                        $27 m

Total                               $32 m                                        $41.95 m

Explanation:

For book Value:

Net fixed assets=$18.00 million

Current Liabilities=$7.50 million

net working capital=$6.50 million

Formula:

Net working capital=Current assets-Current Liabilities

$6.50 million=Current assets-$7.50 million

Current Assets=$6.50+$7.50

Current Assets=$14 million

Total Assets=Net fixed assets+Current Assets

Total Assets=$18 m+$14 m

Total Assets=$32 m

For Market Value:

Net fixed assets=$27.00 million

Current Liabilities=$7.50 million

net working capital=$7.45 million

Formula:

Net working capital=Current assets-Current Liabilities

$7.45 million=Current assets-$7.50 million

Current Assets=$7.45+$7.50

Current Assets=$14.95 million

Total Assets=Net fixed assets+Current Assets

Total Assets=$27 m+$14.95 m

Total Assets=$41.95 m

                                     Book Value                          Market Value

Current Assets              $14 m                                        $14.95 m

Fixed Assets                  $18 m                                        $27 m

Total                               $32 m                                        $41.95 m

You might be interested in
Exhibit 9-1 Refer to Exhibit 9-1. If the economy is self-regulating, the price level is:_________.
victus00 [196]

Answer: b) lower in long-run equilibrium than in short-run equilibrium.

Explanation:

A self regulating economy will try to move to the long run Equilibrium.

From the graph attached you will notice that the Price Level at the point where the Long Run Curve intersects with the Aggregate Demand curve is lower than the point where the Short Run Supply curve intersects with the same Aggregate Supply.

This means that Prices in the long term at equilibrium will be less than prices in the short term at Equilibrium should the Economy be a self regulating type that will move towards a long term Equilibrium.

5 0
3 years ago
Question 2 of 8
sveta [45]

Answer:

This type of income is known as non-operating income in the financial statements

Explanation:

Non-operating income, as the world implies, is the income that a firm earns from activities that are not related to its main economic activity. An example would be a mall, whose main activity is the rental and management of commercial real estate, earning some income from short-term investments in the secondary market. This interest would be reported as non-operating income, and would be treated as such for financial, accounting, and tax purposes.

6 0
2 years ago
Tom Cruise Lines Inc. issued bonds five years ago at $1,000 per bond. These bonds had a 25-year life when issued and the annual
Dmitrij [34]

<u>Solution and Explanation:</u>

Required Return after 5 year =  Real rate of return +   Inflation premium + Risk premium

Required Return after 5 year = 5+2+4

Required Return after 5 year =11%

No of year left to maturity = 25

Annual Interest payment = 15%*1000 = 150

Face value of Bond = 1000

New price of the bond = pv (rate, nper, pmt, fv)

New price of the bond = pv (11%,25,150,1000)

New price of the bond = $ 1336.87

4 0
3 years ago
Feeling "He who does the work of the King ought to be King," Pope Zacharias helped whom become King of the Franks in 751?
Gnom [1K]

Answer:

(C) Pepin The Short

Explanation:

In 741AD, Pepin took over from his father as Mayor of the Palace. He ruled alongside his elder brother.

In 743AD, Pepin and his brother chose Childeric to be the <em>apparent</em> King of the Franks. Both brothers still wielded the functional power to the throne. Childeric was just to 'appear to be' the King (unknown to him though).

In 747AD, Pepin's brother stepped down (intentionally and on his own accord). Pepin then became the only ruler of the entire Frankish territory.

In 751AD, Pepin, without full support from his clan, lured Childeric into monastery in order to remove him as the 'face of Francia'.

Pope Zacharias helped Pepin to be proclaimed King of the Franks, against all opposition.

3 0
3 years ago
A difference between explicit and implicit costs is that a) explicit costs must be greater than implicit costs. b) explicit cost
Andrej [43]

Answer:

Implicit costs do not require a direct monetary outlay by the firm, whereas explicit costs do.

Explanation:

Rent, salary, and other operating expenses are considered explicit costs. They are all recorded within a firm's financial statements, meaning they are present and clearly shown or reported as a separate cost. The main difference between the two types of costs is that implicit costs are opportunity costs, meaning that it is present but it is not initially shown or reported as a separate cost, while explicit costs are expenses paid with a company's own tangible assets. In other words, explicit costs are always shown, implicit costs are not, at least initially, exactly like the meaning words suggest.

8 0
3 years ago
Other questions:
  • Swift Oil Company is considering investing in a new oil well. It is expected that the oil well will increase annual revenues by
    6·1 answer
  • The financial records of LeRoi Jones Inc. were destroyed by fire at the end of 2014. Fortunately, the controller had kept certai
    14·1 answer
  • Which of the following statements most accurately describes the federal government and its employees?
    10·1 answer
  • Hale Company purchased two identical inventory items. The item purchased first cost $22.00. The item purchased second cost $25.0
    10·1 answer
  • Post Delivery Service acquired at book value 80 percent of the voting shares of Script Real Estate Company. On that date, the fa
    11·1 answer
  • Quick Cleaners, Inc. (QCI), has been in business for several years. It specializes in cleaning houses but has some small busines
    12·1 answer
  • Tayahin
    8·1 answer
  • You will die when you poop in the bed
    9·2 answers
  • Suppose that the bakers of bread face an increase in the price of flour (an input). in the market for bread, this will cause the
    13·1 answer
  • In a mixed-market economy, the government plays a role and can affect the circular flow of income. Governments participate in th
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!