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Question: A company's management has just completed an assessment of the company's assets and liabilities as on 31-12-2016 and has obtained the following information.

1- The firm has total current assets worth $625,000 at book value and $519,000 at market value.

Its long-term assets include plant and equipment valued at market for $695,000, While their book value is $940,000.

The Company's total current liabilities are valued at market for $543,000, while their book value is $495,000. Both the book value and the market value of long-term debt is $350,000.

If the company's total assets are equal to a market value of $1,214,000 (book value of $1,565,000),

From the above information:

What are the book value and market value of its stockholders' equity?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M92796929

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