Question

Lew's auto repair has cash of $18,600, accounts receivable of $34,500, accounts payable of $28,900, inventory of $97,800, long-term debt of $142,000, and net fixed assets of $363,800. the firm estimates that if it wanted to cease operations today it could sell the inventory for $85,000 and the fixed assets for $349,000. the firm could collect 100 percent of its receivables as they are secured. what is the market value of the firm's assets?

Answer 1

Market value of the assets is the total value of the assets the organization will receive if it is liquidated today.

Market value of firm’s total assets = Market value of firm’s current assets + Market value of firm’s fixed assets

= Cash + Market value of inventory + Collectible accounts receivables + Market value of fixed assets

= 18600 + 85000 + 34500 + 349000

= $487100

Therefore, the market value of firm’s assets would be $487,100.

Answer 2

Answer:

$487 100

Explanation:

Please see attached