Business founders hold equity. true or false

Klingon Cruisers, Inc., purchased new cloaking machinery five years ago for $20 million. The machinery can be sold to the Romula

muminat

Answer:

1) Book Value= $16,464,000

2) Market Value = $19,080,000

Explanation:

The first question is to determine the book value of Klingon's assets today. Book value is the carrying value of the business in its balance sheet.

Book Value = Net working Capital + Current Liabilities + Net Fixed Assets

Net working Capital= $226,000

Current Liabilities= $700,000

Net Fixed Assets= $15,500,000

Book Value = $226,000+ $700,000+$15,500,000= $16,464,000

2) Calculate the market value

The formula for market value = How much the machinery was sold to Romulans today+ today's value of the current assets if they are liquidated

The market value of assets is a function of the current market price they can be sold for and received on the day of the valuation

Market Value= $18,000,000 + $1,080,000= $19,080,000

4 0

4 years ago

If the company also has $1,000 of petty cash on hand (recorded in a separate account), what total amount should the company repo

vredina [299]

Answer:

Explanation: from the above question, the total of cash and cash equivalent to be recorded in the balance sheet includes all cash balances in the bank and cash balance in the petty cash account.

From the above question, the cash and cash equivalent balance as at April 30 is $1,000 plus all bank balances as at that date.

4 0

3 years ago

Ben works at a top accounting firm in Salt Lake City and his responsibilities include developing individual and departmental goa

olasank [31]

Answer:

Information levels

Explanation:

Ben works at a top accounting firm in Salt Lake City and his responsibilities include developing individual and departmental goals, and generating financial analysis across departments and the enterprise as a whole. Ben's duties provide value-added to his company and would be categorized as different information levels

Ben has to manage information on what we can say three different level; individual level which is developing individual goals, team or business unit , which according to the question is departmental goals and generating financial analysis across deparments and on a corporate level, which is the enterprise as a whole which will be reviewed by the executive teamand adding value to the company as a whole.

4 0

3 years ago

If an increase in the supply of a product in the market results in a decrease in price, but no change in the quantity traded, th

Digiron [165]

If an increase in the supply of a product in the market results in a decrease in price, but no change in the quantity traded, then the quantity of products will be growing and growing in the stock. this will again lead to a decrease in price and consumes more time to sale their stock. This will create a heavy loss to the investor. It may be overcome by innovative thoughts such as stopping the production of current product and launching a new product with available materials. So that it will balance the production and sale.

6 0

4 years ago

You plan to save $2,400 a year and earn an average rate of interest of 5.6 percent. How much more will your savings be worth at

mixas84 [53]

Answer:

If the deposits are made at the beginning of the year, the future value will increase by $18,821.1.-

Explanation:

Giving the following information:

Annual deposit= $2,400

Interest rate= 5.6%

Number of periods= 40

First, we will calculate the future value when the deposits are made at the end:

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

FV= {2,400*[(1.056^40) - 1]} / 0.056

FV= $336,091.14

Now, if the deposits are made at the beginning:

FV= {A*[(1+i)^n-1]}/i + {[A*(1+i)^n]-A}

FV= 336,091.14 + [(2,400*1.056^40) - 2,400]

FV= 336,091.14 + 18,821.10

FV= $354,912.24

Difference= 354,912.24 - 336,091.14

Difference= $18,821.1

If the deposits are made at the beginning of the year, the future value will increase by $18,821.1.-

8 0

3 years ago