Question
In: Accounting
Olds Company declares Chapter 7 bankruptcy. The following are the asset and liability book values at...
Olds Company declares Chapter 7 bankruptcy. The following are the asset and liability book values at that time. Administrative expenses are estimated to be $20,000:
| Cash | $ | 32,000 | |
| Accounts receivable | 68,000 | (worth $36,000) | |
| Inventory | 78,000 | (worth $64,000) | |
| Land (secures note A) | 208,000 | (worth $168,000) | |
| Building (secures bonds) | 408,000 | (worth $336,000) | |
| Equipment | 128,000 | (worth unknown) | |
| Accounts payable | 188,000 | ||
| Taxes payable to government | 28,000 | ||
| Note payable A | 186,000 | ||
| Note payable B | 258,000 | ||
| Bonds payable | 308,000 | ||
The holders of note payable B want to collect at least $129,000.
To achieve this goal, how much does the company have to receive in the liquidation of its equipment?
Solutions
ekkarill92 answered 5 months agoRelated Solutions
Olds Company declares Chapter 7 bankruptcy. The following are the asset and liability book values at...
Olds Company declares
Chapter 7 bankruptcy. The following are the asset and liability
book values at that time. Administrative expenses are estimated to
be $20,000:
Cash
$
32,000
Accounts
receivable
68,000
(worth
$36,000)
Inventory
78,000
(worth
$64,000)
Land (secures
note A)
208,000
(worth
$168,000)
Building
(secures bonds)
408,000
(worth
$336,000)
Equipment
128,000
(worth
unknown)
Accounts
payable
188,000
Taxes payable to
government
28,000
Note payable
A
186,000
Note payable
B
258,000
Bonds
payable
308,000
The holders of note
payable B want...
Olds Company declares Chapter 7 bankruptcy. The following are the asset and liability book values at...
Olds Company declares Chapter 7 bankruptcy. The following are
the asset and liability book values at that time. Administrative
expenses are estimated to be $20,000:
Cash
$
32,000
Accounts receivable
68,000
(worth $36,000)
Inventory
78,000
(worth $64,000)
Land (secures note A)
208,000
(worth $168,000)
Building (secures bonds)
408,000
(worth $336,000)
Equipment
128,000
(worth unknown)
Accounts payable
188,000
Taxes payable to government
28,000
Note payable A
186,000
Note payable B
258,000
Bonds payable
308,000
The holders of note payable B want...
Choose at least two concepts from the following: partnership, corporation, liquidation, bankruptcy chapter 7, bankruptcy chapter...
Choose at least two concepts from the following: partnership,
corporation, liquidation, bankruptcy chapter 7, bankruptcy chapter
11, reorganization, trust, estates, consolidation, parent company,
subsidiary, acquisition, partnerships termination, variable
interest entity, equity method, fair value method.
Required:
Explain how you may use them in your present or future
accounting position. Make sure you provide details to include how
each concept will help you support the financial goals of the
company you currently work for or will work for in the future.
Provide examples of companies that filed for Chapter 7 and Chapter 11 bankruptcy.
Provide examples of companies that filed for Chapter 7 and
Chapter 11 bankruptcy.
Assume the following asset and liability values represent the average values over the year. Also, assume...
Assume the following asset and liability values
represent the average values over the year. Also, assume all sales
are on credit.
Account
Cash $125,000
Accounts Receivable $175,000
Inventory $125,000
Property, Plant & Equipment $200,000
Current Liabilities $325,000
Long-term Liabilities $275,000
Stockholders’ Equity $25,000
Total Sales Revenue $800,000
Total Expense $600,000 (includes $250,000
COGS)
Outstanding Shares 100,000
Price per Share
$50/shr
How is Vertical Analysis calculated and what does it
communicate?
What is the company’s AR Turnover?
Inventory Turnover?...
Xavier Company is going through a Chapter 7 bankruptcy. All assets have been liquidated, and the...
Xavier Company is going through a Chapter 7 bankruptcy. All
assets have been liquidated, and the company retains only $25,500
in free cash. The following debts, totaling $39,550, remain:
Government claims to unpaid taxes
$
6,300
Salary during last month owed to Mr. Key (not an officer)
18,125
Administrative expenses
2,750
Salary during last month owed to Ms. Rankin (not an
officer)
5,525
Unsecured accounts payable
6,850
Indicate how much money will be paid to the creditor associated
with each...
Research the three types of bankruptcy and answer the following questions: Who may file Chapter 7...
Research the three types of bankruptcy and answer the following
questions: Who may file Chapter 7 bankruptcy? What are some of the
reasons that people file bankruptcy? How does bankruptcy affect
interest rates on loans? Credit cards? Then research, identify, and
summarize a specific Chapter 7 bankruptcy case or issue.
Incorporate the legal terminology from your textbook where
appropriate, in both your original post and in your responses to
your classmates. Use academic or legitimate news sources, such as
The...
Which of the following is NOT a type if bankruptcy discussed in Chapter 10? a. Chapter...
Which of the following is NOT a type if bankruptcy discussed in
Chapter 10?
a.
Chapter 13
b.
Chapter 11
c.
Chapter 5
d.
Chapter 7
Which is NOT true of secured transactions?
a.
It describes security interests in both real and personal
property.
b.
The creditor can sell the collateral to satisfy the debt.
c.
It can apply to three-party transactions.
d.
It can apply to two-party transactions.
16. What is the fundamental difference between Chapter 7 and Chapter 13 bankruptcy? What three major...
16. What is the fundamental difference between Chapter 7 and
Chapter 13 bankruptcy? What three major criteria differentiate a
filer's eligibility for each chapter? What debts cannot be
discharged in a Chapter 7 bankruptcy?
17. What is a 529 plan? What restrictions on funding,
contributions, and withdrawals apply?
Which creditors have priority to recover in New York Chapter 7 bankruptcy?
Which creditors have priority to recover in New York Chapter 7
bankruptcy?
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