Question Recently, the owner of Martha's Wares encountered severe legal problems and is trying to sell her business. The company built a building at a cost of $1,250,000 that is currently appraised at $1,450,000. The equipment originally cost $730,000 and is currently valued at $477,000. The inventory is valued on the balance sheet at $420,000 but has a market value of only one-half of that amount. The owner expects to collect 97 percent of the $230,200 in accounts receivable. The firm has $10,600 in cash and owes a total of $1,450,000. The legal problems are personal and unrelated to the actual business. What is the market value of this firm?

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Transcribed Image Text: Recently, the owner of Martha's Wares encountered severe legal problems and is trying to sell her business. The company built a building at a cost of $1,250,000 that is currently appraised at $1,450,000. The equipment originally cost $730,000 and is currently valued at $477,000. The inventory is valued on the balance sheet at $420,000 but has a market value of only one-half of that amount. The owner expects to collect 97 percent of the $230,200 in accounts receivable. The firm has $10,600 in cash and owes a total of $1,450,000. The legal problems are personal and unrelated to the actual business. What is the market value of this firm?
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Transcribed Image Text: Recently, the owner of Martha's Wares encountered severe legal problems and is trying to sell her business. The company built a building at a cost of $1,250,000 that is currently appraised at $1,450,000. The equipment originally cost $730,000 and is currently valued at $477,000. The inventory is valued on the balance sheet at $420,000 but has a market value of only one-half of that amount. The owner expects to collect 97 percent of the $230,200 in accounts receivable. The firm has $10,600 in cash and owes a total of $1,450,000. The legal problems are personal and unrelated to the actual business. What is the market value of this firm?
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01QBZR

Market value of assets Building= 1450000 Equipment= 477000 Inventory= 420000*0.5= 210000 Receivables= 2 ... See the full answer