ABC Corporation has P5,000,000 total assets, P500,000 gross working capital, P200,000net working capital, and P1,500,000 of noncurrent liabilities. The gross working capitalcan be sold only at 80% of book value. The noncurrent assets are equal to their marketvalues except for a building (book value = P500,000) and an equipment (book value =P300,000). They are 75% depreciated. The building has the following relevantinformation.SquareCost toTotal Cost toComponentFootageReproduceReproduceFoundation100.00 P1,000.00 P 100,000.00Floor3,000.00500.001,500,000.00Walls900.00300.00270,000.00Ceiling1,500.00400.00600,000.00Water, electrical andheating system1,000.00700.00700,000.00P3,170,000.00TotalFor the equipment, a 1.25 index can be used to update its value.Based on the above, what is the value of the equity of the entity?

Equity denotes the residual ownership in a company's assets, remaining once liabilities are…

ABC Corporation has P5,000,000 total assets, P500,000 gross working capital, P200,000 net working capital, and P1,500,000 of noncurrent liabilities. The gross working capital can be sold only at 80% of book value. The noncurrent assets are equal to their market values except for a building (book value=P500,000) and an equipment (book value= P300,000). They are 75% depreciated. The building has the following relevant information. Component Foundation Floor Walls Ceiling Water, electrical and heating system Square Footage 100.00 3,000.00 900.00 1,500.00 1,000.00 Cost to Reproduce 1,000.00 100,000.00 500.00 1,500,000.00 300.00 270,000.00 400.00 600,000.00 700.00 Total Cost to Reproduce Total For the equipment, a 1.25 index can be used to update its value. Based on the above, what is the value of the equity of the entity? 700,000.00 3,170,000.00

ABC Corporation has P5,000,000 total assets, P500,000 gross working capital, P200,000 net working capital, and P1,500,000 of noncurrent liabilities. The gross working capital can be sold only at 80% of book value. The noncurrent assets are equal to their market values except for a building (book value=P500,000) and an equipment (book value= P300,000). They are 75% depreciated. The building has the following relevant information. Component Foundation Floor Walls Ceiling Water, electrical and heating system Square Footage 100.00 3,000.00 900.00 1,500.00 1,000.00 Cost to Reproduce 1,000.00 100,000.00 500.00 1,500,000.00 300.00 270,000.00 400.00 600,000.00 700.00 Total Cost to Reproduce Total For the equipment, a 1.25 index can be used to update its value. Based on the above, what is the value of the equity of the entity? 700,000.00 3,170,000.00

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter9: Capital Budgeting And Cash Flow Analysis

Section: Chapter Questions

Problem 1P

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