Glo's Glasses Balance Sheet Lists Net Fixed Assets as $20

question 119

Multiple Choice

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

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Definitions:

Gillette Fusion

A line of men's manual and power razors launched by Gillette, featuring multiple blades for a closer shave.

Growth Stage

This refers to the phase in a product's life cycle where it experiences rapid market acceptance and increasing profits.

Advertising Emphasis

The focus or priority placed on advertising efforts within a company's overall marketing strategy.

Selective Demand

Demand for a specific brand or product without regard for available substitutes, often as a result of successful branding.