Problem:
Jake owns the Corner Market which he is trying to sell so that he can retire and travel. The Corner Market owns the builing in which it is located. This building was built at a cost of $1,200,000 and is currently appraised at $1,490,000. The counters and fixtures originally cost $656,000 and are currently valued at $420,000. The inventory is valued on the balance sheet at $373,000 and has a retail maket value equal to 1.2 times its cost. Jake expects the store top collect 96 pecent of the $220,300 in accounts receivable. The firm has $9,500 in cash and has total debt of $1,500,000.
Required:
Question: What is the market value of the firm?
Note: Show all workings.