Answer:
(a) $2.14 million; $3.45 million
(b) $1.3 million; $4.15 million
Explanation:
Given that,
(a) Book value of current assets = Net working capital + current liability
= $0.54 million + $1.6 million
= $2.14 million
Total book value of current and net fixed assets:
= Book value of current assets + Book value of net fixed assets
= $2.14 million + $3.45 million
= $5.59 million
(b) Market value of current assets:
= Cash value of all the current assets today
= $1.3 million
Market value of net fixed assets:
= Selling value of machinery today
= $4.15 million
Total market value:
= Market value of current assets + Market value of net fixed assets
= $1.3 million + $4.15 million
= $5.45 million