recently, the owner of martha's wares encountered severe legal problems and is trying to sell her business. the company built a building at a cost of $1,140,000 that is currently appraised at $1,340,000. the equipment originally cost $620,000 and is currently valued at $367,000. the inventory is valued on the balance sheet at $310,000 but has a market value of only one-half of that amount. the owner expects to collect 98 percent of the $175,200 in accounts receivable. the firm has $11,700 in cash and owes a total of $1,340,000. the legal problems are personal and unrelated to the actual business. what is the market value of this firm?

Question

16-12-2022
Business

Answered

recently, the owner of martha's wares encountered severe legal problems and is trying to sell her business. the company built a building at a cost of $1,140,000 that is currently appraised at $1,340,000. the equipment originally cost $620,000 and is currently valued at $367,000. the inventory is valued on the balance sheet at $310,000 but has a market value of only one-half of that amount. the owner expects to collect 98 percent of the $175,200 in accounts receivable. the firm has $11,700 in cash and owes a total of $1,340,000. the legal problems are personal and unrelated to the actual business. what is the market value of this firm?

Answer :

Other Questions

Assume forrest corporation debtholders are promised payments in one year of $42 if the firm does well and $18 if the firm does poorly. there is a 50/50 chance o

Item 19 a company purchased an asset for $3,900,000 that will be used in a 3-year project. the asset is in the 3-year macrs class. the depreciation percentage e

a business that will comply with the letter of the law but no more than that is a(n) business.

If skye continues to use the same market-value capital structure, what is the firm's wacc assuming that (1) it uses only retained earnings for equity and (2) if

Property Tax Calculations and Journal Entries. The Village of Darby’s budget calls for property tax revenues for the fiscal year ending December 31, 2011, of $2

Disturbed corporation needs to raise $61.5 million to fund a new project. the company will sell shares at a price of $24.60 in a general cash offer and the comp

The scratch off tickets for the $500 loaded game cost $5 each. if you buy one, what is the expected gain or loss when you consider both the cost of the ticket a

Nelson company experienced the following transactions during year 1, its first year in operation. issued $8,400 of common stock to stockholders provided $4,700

Melody is considering the installation of solar panels for her house. solar city quoted her a total cost of $22,000. she expects to save $3,500 per year in util

If the marginal cost of producing the first unit of some good is $20 and the marginal cost of producing the second unit is $30, the average variable cost of pro

febyyyvaalentina febyyyvaalentina · Answer 1 · 2022-12-20T09:54:37-05:00

The company has a liability of $1,340,000, so the market value of the firm is $1,940,386 in assets minus $1,340,000 in liabilities.

Market value is the price that a asset would fetch in the market. It is the price that a buyer is willing to pay for the asset, taking into account various factors such as supply and demand, competition, and the asset's intrinsic value. Market value is often used to determine the worth of stocks, real estate, and other assets that can be bought and sold.

Market value of assets = $1,340,000 (building) + $367,000 (equipment) + $155,000 (inventory) + $171,686 (accounts receivable) + $11,700 (cash) = $1,940,386

Market value of the firm = $1,940,386 (assets) - $1,340,000 (liabilities) = $600,386

This is the market value of the company, but it's worth noting that the legal problems of the owner may affect the sale price of the business.

Learn more about market value, here https://brainly.com/question/15148120

#SPJ4