NET working capital "NWC" = current assets - current liabilities
So....
Net Fixed Assets: 12m + NWC 225k = book: $12,225,000
Klingon Widgets, Inc., purchased new cloaking machinery four years ago for $15 million. The machinery can be sold to the Romulans today for $14.2 million. Klingon’s current balance sheet shows net fixed assets of $12 million, current liabilities of $880,000, and net working capital of $225,000. If all the current assets were liquidated today, the company would receive $1.07 million cash.
Can someone explain how to calculate the book value? Thank you
