Question

K1 CHOI Intro. & 02 FIN STMTS Saved Help Save & Exit Submit Check my work Ava's SpinBall Corp. lists fixed assets of $32 million on its balance sheet. The firm's fixed assets have recently been appraised at $56 million. Ava's SpinBall Corp.'s balance sheet also lists current assets at $25 million. Current assets were appraised at $46 million Current liabilities' book and market values stand at $7 million and the firm's book and market values of long-term debt are $28 million. Calculate the book and market values of the firm's stockholders' equity. Construct the book value and market value balance sheets for Ava's SpinBall Corp. (Enter your answers in millions of dollars.) BOOK VALUE MARKET VALUE in millions of dollars) Book Assets Current assets Fixed assets Total Liabilities and Equity Current liabilities Long-term debt Stockholders' equity Total Hint 0 $ < Prev 8 of 8 ::: Next > 27 PM

Answer 1

NOTE: The appraised value is the market value whereas the listed value is the book value. Further, the solution is based on the following equation

Total Assets = Total Liabilities + Equity

( all figures in $ million )	Book Value	Market Value
Assets
Current Assets	25	46
Fixed Assets	32	56
Total	57	102
Liabilities and Shareholders Equity
Current Liability	7	7
Long-Term Debt	28	28
Stockholders' Equity	(57-28-7) = 22	(102-28-7) = 67
Total	57	102