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:

Tunica Media

The middle layer of the wall of a blood vessel consisting mainly of smooth muscle cells and elastic fibers, responsible for regulating the diameter of the vessel.

Lumen

The inside space of a tubular structure, such as a blood vessel or intestine.

Carotid Sinus

A dilated area at the base of the internal carotid artery that contains receptors to help regulate blood pressure.

Baroreceptors

Pressure-sensitive sensory neurons located mainly in the carotid sinus and aortic arch, which help regulate blood pressure.