ABC Corporation is experiencing difficulty in paying its bills and is considering filing for bankruptcy. Current data show: Assets Cash Accounts Receivable Inventory Materials Inventory - Finished Goods Prepaid Expenses Land Building Trucks Equipment Intangibles Total Assets Liabilities Accounts Payable Book Value P 4,000 40,000 36,000 50,000 1,000 10,000 70,000 20,000 45,000 16,000 P292,000 P 77,000 25,000 12,000 8,000 5,000 Est. Realizable Value P 4,000 20,000 27,000 55,000 0 42,000 60,000 6,000 25,000 0 Secured by: 70% of receivables Bank Loan Wages Payable Taxes Payable Truck Loan 43,000 Mortgage Payable Loan Payable Shareholder Loan 50,000 110,000 Shareholders' Equity (38,000) Total Liabilities and Equity P292,000 Compute for the amount to be paid to unsecured creditors (partial and without priority) Truck with P12,000 BV & P2,500 ERV Land and Building Finished Goods Not subordinated to other debt
ABC Corporation is experiencing difficulty in paying its bills and is considering filing for bankruptcy. Current data show: Assets Cash Accounts Receivable Inventory Materials Inventory - Finished Goods Prepaid Expenses Land Building Trucks Equipment Intangibles Total Assets Liabilities Accounts Payable Book Value P 4,000 40,000 36,000 50,000 1,000 10,000 70,000 20,000 45,000 16,000 P292,000 P 77,000 25,000 12,000 8,000 5,000 Est. Realizable Value P 4,000 20,000 27,000 55,000 0 42,000 60,000 6,000 25,000 0 Secured by: 70% of receivables Bank Loan Wages Payable Taxes Payable Truck Loan 43,000 Mortgage Payable Loan Payable Shareholder Loan 50,000 110,000 Shareholders' Equity (38,000) Total Liabilities and Equity P292,000 Compute for the amount to be paid to unsecured creditors (partial and without priority) Truck with P12,000 BV & P2,500 ERV Land and Building Finished Goods Not subordinated to other debt
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
5.
Transcribed Image Text:ABC Corporation is experiencing difficulty in paying its bills and is considering filing for bankruptcy.
Current data show:
Assets
Cash
Accounts Receivable
Inventory Materials
Inventory - Finished Goods
Prepaid Expenses
Land
Building
Trucks
Equipment
Intangibles
Total Assets
Liabilities
Accounts Payable
Book
Value
P 4,000
40,000
36,000
50,000
1,000
10,000
70,000
20,000
45,000
16,000
P292,000
P 77,000
25,000
12,000
8,000
5,000
Est. Realizable
Value
P 4,000
20,000
27,000
55,000
0
42,000
60,000
6,000
25,000
0
Secured by:
70% of receivables
Bank Loan
Wages Payable
Taxes Payable
Truck Loan
43,000
Mortgage Payable
Loan Payable
Shareholder Loan
50,000
110,000
Shareholders' Equity
(38,000)
Total Liabilities and Equity
P292,000
Compute for the amount to be paid to unsecured creditors (partial and without priority)
Truck with P12,000 BV & P2,500 ERV
Land and Building
Finished Goods
Not subordinated to other debt
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