XYZ Co., has cash of $900 and accounts receivable of $1,300. The inventory cost $4,200 and can be sold today for $6,100. The fixed assets were purchased at a cost of $42,800 of which $18,300 has been depreciated. The fixed assets can be sold today for $19,500. What is the total book value of the assets of the company?
Answer: $ 25,900
Working note for the above answer
We have been provided with the information as follow
| Cash | 900 |
| accounts receivable | 1300 |
| inventory | 4200 |
| The fixed asset purchased at | 42800 |
| Depriciation till date | 18300 |
Now we will calculate book Value of the the Fixed assets as follow
| Total Book Value of the Assets | |
| Cash | 900 |
| accounts receivable | 1300 |
| inventory | 4200 |
| The fixed asset purchased at | 19500 |
| 25900 |
Note:
Inventory is recorded as $ 4200 (lower of cost or market)
Fixed Assets is recorded as $19,500 (lower of cost or market) *These need to be written down since their value is impaired.
