The Import Store has cash of $34,600 and accounts receivable of $54,200. The inventory cost $92,300 and can be sold today for $146,900. The fixed assets were purchased at a cost of $234,500 of which $87,900 has been depreciated. The fixed assets can be sold today for $199,000. What is the total book value of the firm's assets?

Question

Quizplus · Accepted Answer

The total book value of the firm's assets is calculated by adding cash, accounts receivable, inventory at cost, and fixed assets at book value (cost minus depreciation). Thus, $34,600 (cash) + $54,200 (accounts receivable) + $92,300 (inventory) + ($234,500 - $87,900) (fixed assets) = $327,700.

The Import Store Has Cash of $34,600 and Accounts Receivable