Muffin's Masonry, Inc

question 48

Multiple Choice

Muffin's Masonry, Inc.'s balance sheet lists net fixed assets as $16 million. The fixed assets could currently be sold for $17 million. Muffin's current balance sheet shows current liabilities of $5.5 million and net working capital of $6.5 million. If all the current accounts were liquidated today, the company would receive $10.25 million cash after paying $5.5 million in liabilities. What is the book value of Muffin's Masonry's assets today? What is the market value of these assets?

• A) Book Value: $28m; Market Value: $32.75m
• B) Book Value: $32m; Market Value: $42.25m
• C) Book Value: $32m; Market Value: $32.75m
• D) Book Value: $28m; Market Value: $42.25m

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Definitions:

Deplete

To deplete means to use up or exhaust the supply or resources of something.

Performance Goals

Specific, measurable objectives set by individuals or teams to achieve desired levels of performance within a set timeframe.

High

A general term that can refer to being at or in an elevated position or state, indicating a level above average or normal.

Low

Referring to something that is below average in value, intensity, or magnitude.