following information about the corporation's finar Assets Cash Accounts receivable, net
following information about the corporation's finar Assets Cash Accounts receivable, net
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
The question is about corporation liquidation
![PAYLESS Corporation filed a petition of bankruptcy on January 2011. On March 15, 2011 the trustee provided the
following information about the corporation's financial affairs.
Book values
Estimated
Realizable
Values
Assets
P 200, 000
1, 000, 000
1, 500, 000
2. 500, 000
P 5,200, 000
P 200, 000
750, 000
750, 000
Cash
Accounts receivable, net
Inventories
Plant assets – net
Total
2, 800, 000
Liabilities
Р 500, 000
1, 500, 000
1, 000, 000
2. 200. 000
P 5, 200, 000
4. Determine the amount expected to be available for unsecured claims.
Liability for priority claims
Accounts payable – unsecured
Note payable, secured by accounts receivable
Mortgage payable, secured by all plant assets
Total
A. P1, 500, 000
В. Р900, 000
С. Р800, 000
D. P1, 050, 000
5. Determine the expected recovery per peso of unsecured claims.
В. РО.5720
С. РО.70
A. PO.60
D. PO.6350
6. The amount of recovery to unsecured accounts payable.
В. Р900, 000
С. Р1, 290, 000
A. P855, 000
D. P600, 000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F09185f93-7e41-4bbc-bb3b-13fe8a506857%2F6e5bbfd5-2c2f-4569-827a-b408569a46e1%2Fho6d08r_processed.png&w=3840&q=75)
Transcribed Image Text:PAYLESS Corporation filed a petition of bankruptcy on January 2011. On March 15, 2011 the trustee provided the
following information about the corporation's financial affairs.
Book values
Estimated
Realizable
Values
Assets
P 200, 000
1, 000, 000
1, 500, 000
2. 500, 000
P 5,200, 000
P 200, 000
750, 000
750, 000
Cash
Accounts receivable, net
Inventories
Plant assets – net
Total
2, 800, 000
Liabilities
Р 500, 000
1, 500, 000
1, 000, 000
2. 200. 000
P 5, 200, 000
4. Determine the amount expected to be available for unsecured claims.
Liability for priority claims
Accounts payable – unsecured
Note payable, secured by accounts receivable
Mortgage payable, secured by all plant assets
Total
A. P1, 500, 000
В. Р900, 000
С. Р800, 000
D. P1, 050, 000
5. Determine the expected recovery per peso of unsecured claims.
В. РО.5720
С. РО.70
A. PO.60
D. PO.6350
6. The amount of recovery to unsecured accounts payable.
В. Р900, 000
С. Р1, 290, 000
A. P855, 000
D. P600, 000
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