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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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