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NeTakaya
2 years ago
5

Klingon Widgets, Inc., purchased new cloaking machinery three years ago for $4.4 million. The machinery can be sold to the Romul

ans today for $6.6 million. Klingon’s current balance sheet shows net fixed assets of $3.2 million, current liabilities of $750,000, and net working capital of $134,000. If all the current accounts were liquidated today, the company would receive $865,000 cash. a. What is the book value of Klingon’s total assets today? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567.) b. What is the sum of the market value of NWC and the market value of fixed assets? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567.)
Business
1 answer:
Aliun [14]2 years ago
6 0

Answer:

(a) $4,084,000

(b) $6,715,000

Explanation:

(a) Current Assets:

= Current Liabilities + Working Capital

= $750,000 + $134,000

= $884,000

Therefore, the book value of Klingon’s total assets today is as follows;

= Current Assets book value + Net fixed assets

= $884,000 + $3,200,000

= $4,084,000

(b) Market value of NWC:

= market value of current assets - current liabilities

= $865,000 - $750,000

= $ 115,000

Sum of market values of NWC and fixed assets:

= Market value of NWC + Market value of fixed assets

= $ 115,000 + $6,600,000

= $6,715,000

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Why do you think wants is less important?​
viktelen [127]

Answer:

Wants is less important because you don't need it/them to survive, you can live with only your needs, you should only get your wants only if you can afford it and still have enough money for needs.

Explanation:

I don't know if that made sense lol

3 0
3 years ago
A business has the following items: - Land $1,500,000 - Machinery $30,000 - Cash $10,000 - Loan $500,000 - Owner’s equity? _____
vodomira [7]

Answer:

The owner's equity amounts to $1,040,000

Explanation:

The formula to compute the owner's equity is as:

Owner's equity = Assets - Liabilities

Where

Assets = Land + Machinery + Cash

= $1,500,000 + $30,000 + $10,000

= $1,500,000 + $40,000

= $1,540,000

Liabilities = Loan

= $500,000

Putting the values above in the formula:

= $1,540,000 - $500,000

= $1,040,000

6 0
3 years ago
Handy Man, Inc., has zero coupon bonds outstanding that mature in eight years. The bonds have a face value of $1,000 and a curre
AnnZ [28]

Answer:

5.657%

Explanation:

Data provided:

Face value = $1,000

Current market price = $640

Time of maturity, t = 8 year

Now,

the compounding formula is given as:

Face value = Current amount × (1+\frac{r}{n})^{nt}

where,

r is the rate i.e pretax rate of debt

n is the number of times the interest is compounded i.e for semiannual n = 2

thus, on substituting the values, we get

$ 1,000= $ 640 × (1+\frac{r}{2})^{2\times8}

or

1.5625 = (1+\frac{r}{2})^{16}

or

(1+\frac{r}{2}) = 1.0282

or

r = 0.05657

or

pretax cost of debt = 0.05657 × 100% = 5.657%

3 0
2 years ago
A new tax on gasoline causes a reduction in the purchase of new vehicles with poor fuel economy. This is an example of what type
Ugo [173]

Answer:

Option (C) is correct.

Explanation:

Negative Indirect.

This is due to the indirect affect of tax on the purchase of new vehicle because a new tax on gasoline reduces the consumers incentive to the buy the new vehicles. Therefore, it is a negative indirect incentive.

Also, there is a fall in the number of cars or vehicles purchased because of the tax imposed on the gasoline.

7 0
3 years ago
The principal-agent problem arises in labor markets because: Group of answer choices compensating wage differences do not pay fo
densk [106]

Answer:

workers may provide less-than-expected work effort.

Explanation:

Principal-agent problem

This is also called Agency problem. It is simply defined as a type of problem of motivating one party that is the agent just to act on behalf of another person which is the principal. This problems arise usually when incentives between the agent and the principal are not perfectly aligned or in tune.

This form of problem is also said to occur when agents example a firm's managers tends to run after their own personal goals rather than the goals of the principals who is the firm's owners.

Agency relationship

This form of relationship is said to occur if there is a set up or an arrangement in where one person's welfare is dependent or based on what another person does.

Agent

This is simply known as an Individual whose services has being employed by a principal so as to help achieve the principal's objective.

Principle

This is also known as a person who simply employs the services of one or more agents so as to obtain or achieve an objective.

6 0
3 years ago
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