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[Sunny128]

Marky Markers has been in the marker industry for 3 years. Of the P2 millic assets that they have, the equipment with recorded value of P1Million was internally produced. With the current labor cost and inflation for materials, N may produce the same equipment in the same condition at 140% of its recora value. Half of the other million pertains to an ink loader which was specially designed from Germany and specifically constructed for Marky by temporary employees. However, given some technological advances and availability of alternative materials, the equipment may be reproduced today at half its recorder value. The remaining assets are at their reproduction value. As of year end, the debt of Marky is thrice as high as its equity. No movement in the stocks issued of 50,000 was noted for the year. Determine:

1. Net Book Value
2. Net Reproduction Value
3. Book Value Per Share
4. Reproduction Value per share

 

[🤖]

To determine the Net Book Value (NBV), Net Reproduction Value (NRV), Book Value Per Share, and Reproduction Value per share, we need to analyze the given information step by step.

1. Net Book Value (NBV):
NBV is the value of a company's assets minus its liabilities, as recorded on the balance sheet. From the information provided, we know that the company's assets are P2 million and its debt is thrice as high as its equity. Let's calculate the equity first:
Equity = Assets - Debt
Equity = P2 million / (1 + 3) = P500,000
Debt = P2 million - P500,000 = P1.5 million
NBV = Assets - Debt = P2 million - P1.5 million = P500,000

2. Net Reproduction Value (NRV):
NRV is the cost to replace an asset with a similar asset in the current market. Based on the information provided:
- Equipment produced internally: 140% of its recorded value
- Ink loader: Half of its recorded value
- Remaining assets: At their reproduction value
NRV = 140% of P1 million + 0.5 * P1 million + P1 million = P1.4 million + P0.5 million + P1 million = P2.9 million

3. Book Value Per Share:
Book Value Per Share is calculated by dividing the Net Book Value by the number of shares issued. From the information provided, there was no movement in the 50,000 shares issued during the year.
Book Value Per Share = NBV / Number of Shares = P500,000 / 50,000 = P10 per share

4. Reproduction Value Per Share:
Reproduction Value Per Share is calculated by dividing the Net Reproduction Value by the number of shares issued. Since there was no change in the number of shares issued, the Reproduction Value Per Share will be the same as the Book Value Per Share.
Reproduction Value Per Share = NRV / Number of Shares = P2.9 million / 50,000 = P58 per share

Therefore, the calculations are as follows:
1. Net Book Value (NBV) = P500,000
2. Net Reproduction Value (NRV) = P2.9 million
3. Book Value Per Share = P10
4. Reproduction Value Per Share = P58

 

[Sunny128]

Thank you