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 SAPIE Shareholders' Equity Total Liabilities and Equity Compute for the Net Free Assets Book Value 4,000 40,000 36,000 50,000 OTINI 1,000 10,000 70,000 20,000 45,000 16,000 P292,000 Liabilities Secured by: P 77,000911 Accounts Payable Bank Loan Reminder from the $25,000 indbook: Code of 70% of receivables Wages Payable cheating during exam12,000 quizzes or plagiarism in connection Taxes Payable with any academic wo 8,000ting of the same: 1st violation- Truck Loan warning with invalidat5,000 ade; Truck with P12,000 BV & P2,500 ERV Mortgage Payable pension with invo43,000 grade; 3rd violatiLand and Building Loan Payable to dismissal/ non-re-50,000 with invalidation of Finished Goods Shareholder Loan Not subordinated to other debt UNIVERSI 110,000 (38,000) P292,000 Est. Realizable Value P 4,000 20,000 LEDIFICE
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 SAPIE Shareholders' Equity Total Liabilities and Equity Compute for the Net Free Assets Book Value 4,000 40,000 36,000 50,000 OTINI 1,000 10,000 70,000 20,000 45,000 16,000 P292,000 Liabilities Secured by: P 77,000911 Accounts Payable Bank Loan Reminder from the $25,000 indbook: Code of 70% of receivables Wages Payable cheating during exam12,000 quizzes or plagiarism in connection Taxes Payable with any academic wo 8,000ting of the same: 1st violation- Truck Loan warning with invalidat5,000 ade; Truck with P12,000 BV & P2,500 ERV Mortgage Payable pension with invo43,000 grade; 3rd violatiLand and Building Loan Payable to dismissal/ non-re-50,000 with invalidation of Finished Goods Shareholder Loan Not subordinated to other debt UNIVERSI 110,000 (38,000) P292,000 Est. Realizable Value P 4,000 20,000 LEDIFICE
Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter24: Bankruptcy, Reorganization, And Liquidation
Section: Chapter Questions
Problem 4P
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