Purchased new cloaking machinery three years

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Reference no: EM131947057

Klingon Widgets, Inc., purchased new cloaking machinery three years ago for $6.4 million. The machinery can be sold to the Romulans today for $4.2 million. Klingon's current balance sheet shows net fixed assets of $2.95 million, current liabilities of $2.2 million, and net working capital of $540,000. If all the current assets were liquidated today, the company would receive $1.55 million cash.

Reference no: EM131947057

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