Klingon Widgets, Inc., purchased new cloaking machinery three years ago for $4.2 million. The machinery can be sold to the Romulans today for $6.4 million. Klingon’s current balance sheet shows net fixed assets of $3.0 million, current liabilities of $730,000, and net working capital of $132,000. If all the current assets were liquidated today, the company would receive $845,000 cash. Requirement 1: What is the book value of Klingon’s assets today? (Do not include the dollar sign ($).Enter your answer in dollars, not millions of dollars, i.e. 1,234,567.) Book value $ Requirement 2: What is the market value? (Do not include the dollar sign ($). Enter your answer in dollars, not millions of dollars, i.e. 1,234,567.) Market value $

Klingon Widgets, Inc., purchased new cloaking machinery three years ago for $4.2 million. The machinery can be sold to the Romulans today for $6.4 million. Klingon’s current balance sheet shows net fixed assets of $3.0 million, current liabilities of $730,000, and net working capital of $132,000. If all the current assets were liquidated today, the company would receive $845,000 cash.

 

Requirement 1:

What is the book value of Klingon’s assets today? (Do not include the dollar sign ($).Enter your answer in dollars, not millions of dollars, i.e. 1,234,567.)

 

Book value

$

 

Requirement 2:

What is the market value? (Do not include the dollar sign ($). Enter your answer in dollars, not millions of dollars, i.e. 1,234,567.)

 

Market value

$