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Glos Glasses balance sheet lists net fixed assets as $20 million

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Glo\'s Glasses balance sheet lists net fixed assets as $20
million. The fixed assets could currently be sold for $25
million. Glo\'s current balance sheet shows current
liabilities of $7 million and net working capital of $3 million.
If all the current accounts were liquidated today, the
company would receive $9 million cash after paying $7
million in liabilities. What is the book value of Glo\'s assets
today? What is the market value of these assets?
Solution
Book value of Glo assets
Net working capital = current assets - current liabilities
3000000 =current assets - 7000000
current assets = 10000000
total book value of GLo\'s assets= current assets + net
fixed assets
= 10000000 + 20000000
= 30000000
b. market value of assets
net working capital = current assets - current liability
9000000 =current assets - 7000000
current assets = 16000000

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Glo\'s Glasses balance sheet lists net fixed assets as $20 million. The fixed assets could currently be sold for $25 million. Glo\'s current balance sheet shows current liabilities of $7 million and net working capital of $3 million. If all the current accounts were liquidated today, the company would receive $9 million cash after paying $7 million in liabilities. What is the book value of Glo \'s assets today? What is the market value of these assets? Solution Book value of Glo assets Net working capital = current assets - current liabilities 3000000 =current assets - 7000000 current assets ...
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