Adjusted BV: Troy company has cash of $24,250, receivables of $81,700, and inventory of $117,875. In addition, the company has property, plant, and equipment of $152,000. Management has also told you that you can reasonably expect to collect 85 per cent of the receivables, that the inventory could be sold to realise 80 per cent of its book value, and that the sale of the property, plant, and equipment would yield $113,250. What is the liquidation value of this company? Round to the nearest dollar.
A) $375,825
B) $293,695
C) $351,575
D) $301,245
Correct Answer:
Verified
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