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Now assume you were interested in developing a "what if” scenario. Suppose the numbers were reduced...

Now assume you were interested in developing a "what if” scenario. Suppose the numbers were reduced for the following year for the ending market values of land, buildings and improvements, and machinery fall by 20% but all else stayed the same. Recalculate the balance sheet and financial ratios for this scenario.

1. what is the market ending balance for machinery and equipment?

2. what is the market ending balance for the buildings and improvements?

3. what is the market ending balance for real estate/land?

ORIGINAL BALANCE SHEET BELOW:

Market Beginning Market Ending Market Net Change
Machinery and Equipment 300,000 300,000 0
Buildings and Improvements 100,000 100,000 0
Real Estate/Land 1,428,000 1,462,500 34,500
0 0
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Answer #1
Beginning Ending Net change
Machinery & equipment 300000 240000 60000
Building & improvement 100000 80000 20000
Land 1428000 1142400 285600
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