Question

Saved Nimoy Inc., purchased their only fixed asset, a widget machine, four years ago for $7 million. The same machinery can be sold today to Shatner Inc. for $4.55 million. Nimoy's current balance sheet shows net fixed assets of $3.45 million and current liabilities of $1.8 million. If all the current assets were liquidated today, the company would receive $1.9 million cash. Use the balance sheet identity to determine the current market value of Nimoy's total liabilities (current & long- term) given the market value of equity is $4,837,500. (Click to select)

Answer 1

answer is $ 1,612,500 add fair value of fixed asset fair value of current asset total Assets $ $ $ 4,550,000 1,900,000 6,450,000 less fair vale of total liabilities Current value of total liabities $ $ (4,837,500) 1,612,500 Please comment if you have any doubt Please give thumps up if you satisfied with the answer