market value and book value 計算

kou

2010-01-17 9:56 pm

A compamy purchased a new cloaking machine three years ago for $7 million.
The machinery can be sold to other complany today for $3.2 million

.The balance sheet of a company shows net fixed asset of $4,000,000, current liabilities of 2,200,000, and net working capital of $900,000.

If all the current assets were liquidated today, the company would receive $2.8 million cash.What is the book value of the company ‘s assets ? What is the market value?

is 7 millions to to be considered in calculation???or already included in net fixed asset part???
please help me for this calculation!!

thanks a lot!!urgent

更新1:

your ans is not correct.but thanks for your answering^^

回答 (1)

William Tam

2010-01-18 9:07 am

✔ 最佳答案

machinery = PPE = non current assets; market value = $3.2M
total current asset, market value = book value = $2.8M
totoal liabilities = $2.2M

Total assets = Book value = $4M (PPE) + $2.8M = $6.8M
Total liabilities = Book value = $2.2M
Book value = $6.8M - $2.2M = 4.6M

Mkt value = $3.2M + 2.8M - 2.2M = $3.8M

the $7M is the cost, and coz of three years usuage, the book value is declined to $4M. net PPE means cost minus accumulated depreciation

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