Market Value versus Book Value 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?
A)$10 million, $16 million
B)$10 million, $35 million
C)$30 million, $35 million
D)$30 million, $41 million

Question

Quizplus · Accepted Answer

The book value of assets is $30 million ($20 million net fixed assets + $10 million net working capital). The market value of assets is $41 million ($25 million fixed assets + $9 million current assets + $7 million liabilities).

Market Value Versus Book Value Glo's Glasses Balance Sheet Lists