Question

Item1 10 points Return to question Item 1 Item 1 10 points Item Skipped Klingon Cruisers, Inc., purchased new cloaking machinery five years ago for $10 million. The machinery can be sold to the Romulans today for $9.1 million. Klingon's current balance sheet shows net fixed assets of $8 million, current liabilities of $780,000, and net working capital of $220,000. If all the current accounts were liquidated today, the company would receive $1.02 million cash. a. What is the book value of Klingon's assets today? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, e.g., 1,234,567.) b. What is the sum of the NWC and the market value of fixed assets? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, e.g., 1,234,567.)

I cannot get the part B correct. I got the $9,000,000 for the Book value of TA, but I want to see how to get the correct 'sum'. I don't just want the answer, but an explanation of how part B is arrived at. Thanks!

Answer 1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE