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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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