194 Chap ii. iii. "new" assets and liabilities transactions during 20x1 (you may use a compound enty po b. Prepare the statement of realization and liquidation. c. Compute for the ending balance of cash, d. Compute for the ending balance of the estate deficit sc I make a reconciliation for the computed cash balance. PROBLEM 4: MULTIPLE CHOICE - COMPUTATIONAL Use the following information for the next two questions: Pitch Co. is undergoing liquidation. Information on Pitch G assets and liabilities is shown below: ASSETS Book value Assets pledged to fully secured creditors Realizable Free assets Assets pledged to partially secured creditors 1,000,000 1,300 500,000 3000 1,600,000 1,2800 LIABILITIES 3.100.000 2,880 Fully secured creditors Unsecured liabilities with priority 400,000 480 Partially secured creditors 1,000,000 1,050 650,000 650 1,400,000 3,450,000 1,400.0 3,58000 Unsecured creditors without priority L. What is the estimated recovery percentage of uns creditors without priority? a. 60% b. 75% c. 78% d. 80% 2. How much can the "partially secured creditors" recover from their claims? a. 432,000 b. 445,600 c. 510,000 d. 548,000 Use the following information for the next four $23 McGalaxy Co.'s financial pri is as follows:
194 Chap ii. iii. "new" assets and liabilities transactions during 20x1 (you may use a compound enty po b. Prepare the statement of realization and liquidation. c. Compute for the ending balance of cash, d. Compute for the ending balance of the estate deficit sc I make a reconciliation for the computed cash balance. PROBLEM 4: MULTIPLE CHOICE - COMPUTATIONAL Use the following information for the next two questions: Pitch Co. is undergoing liquidation. Information on Pitch G assets and liabilities is shown below: ASSETS Book value Assets pledged to fully secured creditors Realizable Free assets Assets pledged to partially secured creditors 1,000,000 1,300 500,000 3000 1,600,000 1,2800 LIABILITIES 3.100.000 2,880 Fully secured creditors Unsecured liabilities with priority 400,000 480 Partially secured creditors 1,000,000 1,050 650,000 650 1,400,000 3,450,000 1,400.0 3,58000 Unsecured creditors without priority L. What is the estimated recovery percentage of uns creditors without priority? a. 60% b. 75% c. 78% d. 80% 2. How much can the "partially secured creditors" recover from their claims? a. 432,000 b. 445,600 c. 510,000 d. 548,000 Use the following information for the next four $23 McGalaxy Co.'s financial pri is as follows:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:194
Chap
ii.
iii.
"new" assets and liabilities
transactions during 20x1 (you may use a compound enty po
b. Prepare the statement of realization and liquidation.
c. Compute for the ending balance of cash,
d. Compute for the ending balance of the estate deficit sc
I make a reconciliation for the computed cash balance.
PROBLEM 4: MULTIPLE CHOICE - COMPUTATIONAL
Use the following information for the next two questions:
Pitch Co. is undergoing liquidation. Information on Pitch G
assets and liabilities is shown below:
ASSETS
Book value
Assets pledged to fully secured creditors
Realizable
Free assets
Assets pledged to partially secured creditors
1,000,000
1,300
500,000
3000
1,600,000
1,2800
LIABILITIES
3.100.000
2,880
Fully secured creditors
Unsecured liabilities with priority
400,000
480
Partially secured creditors
1,000,000
1,050
650,000
650
1,400,000
3,450,000
1,400.0
3,58000
Unsecured creditors without priority
L. What is the estimated recovery percentage of uns
creditors without priority?
a. 60%
b. 75%
c. 78%
d. 80%
2. How much can the "partially secured creditors"
recover from their claims?
a. 432,000
b. 445,600
c. 510,000
d. 548,000
Use the following information for the next four
$23
McGalaxy Co.'s financial pri
is as follows:
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