The Klingon Corporation has net fixed assets with a book value of $700 and an appraised market value of about $1,000. Net working capital is $400 on the books, but approximately $600 would be realized if all the current accounts were liquidated. Klingon has $500 in long-term debt, both book value and market value. What is the book value of equity? What is the market value?

Equity using book value=$600

Equity using market value=$1,100

Explanation:

The book value of the Equity shall be determined as follows:

Equity=Total Assets-Total liabilities

          =Current assets+Non-current assets-Current liabilities-Non-current liabilities

In the given question

Non-current assets=$700

Current assets-Current liabilities=Net working capital=$400

Non-current liabilities=Long term debt=$500

Equity using book value=$700+$400-$500=$600

The market value of the Equity shall be determined as follows:

Equity=Total Assets-Total liabilities

          =Current assets+Non-current assets-Current liabilities-Non-current liabilities

In the given question

Non-current assets market value=$1,000

Current assets-Current liabilities=Net working capital market value=$600

Non-current liabilities=Long term debt=$500

Equity using market value=$1,000+$600-$500=$1,100

i think the answer to your question is b. directive

if it is for a job, then you should learn everything you can about the job, like what does it involve, what qualification is required and how you are the right person for that job. dress appropriately for the interview. get plenty of rest the night before. good luck!