a. If total liquidation proceeds are $5.425 million, what is the distribution of these proceeds among the various creditors of Failures Galore? Round your answers to the nearest dollar. Settlement, (After Subordination Adjustment) Accounts payable Bank notes payable $ $ $ $ $ Funds available for preferred and common stockholders: $ Mortgage bonds Debentures Subordinated debentures
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Hello and thank you for helping me with this question. For question b (If total liquidation proceeds are $7.975 million), I see B33 was multiplied by B11 which is the interest for question A. Shouldn't we multiply by settlement percentage B31 of 0.65?
- II. The following is a comparative balance sheet of ABC Co. for December 31, 2022 and 2021: Cash and cash equivalents Accounts receivable Inventories Investment in bonds at amortized cost Equipment Accumulated depreciation Total Assets Accounts payable Bonds payable, due 2025 Ordinary stock, P20 par Share premium Retained earnings Total Liabilities and Equity Additional information: . 2022 250,000 327,600 822,000 0 . 2,400,000 (700,000) 3,099,600 359,000 0 1,800,000 280,000 660,600 3,099,600 2021 220,000 356,000 780,000 200,000 2,040,000 (760,000) 2,836,000 • Net income for 2022, P545,600. Depreciation reported on income statement, P140,000. Fully depreciated equipment, no salvage value, was scrapped. Equipment was purchased for P560,000. Bonds of P400,000 were retired at their face value. 281,000 400,000 1,600,000 200,000 355,000 2,836,000 10,000 shares of ordinary stock were issued for cash of P28 per share. Cash dividends declared and paid, P240,000 Investment in bonds with carrying…Use the table for the question(s) below. Consider the following balance sheet: Luther Corporation Consolidated Balance Sheet December 31, 2019 and 2018 (in $ millions) Assets 2019 2018 Liabilities and Stockholders' Equity 2019 2018 Current Assets Current Liabilities Cash 63.6 58.5 Accounts payable 87.6 73.5 Accounts receivable 55.5 39.6 Notes payable / short−term debt 10.5 9.6 Inventories 45.9 42.9 Current maturities of long−term debt 39.9 36.9 Other current assets 6.0 3.0 Other current liabilities 6.0 12.0 Total current assets 171.0 144.0 Total current liabilities 144.0 132.0 Long−Term Assets Long−Term Liabilities Land 66.6 62.1 Long−term debt 239.7 168.9 Buildings 109.5 91.5 Capital lease obligations −−− −−−…3. (a) From the following Balance Sheet as on 31 st December 2019 and 31st December 2020. You are required to prepare a Cash Flow Statement. Amount Amount Assets Rs. 3,00,000 Fixed Assets 80,000 Good Will 1,60,000 Stock 1,20,000 Debtors 80,000 BHIs Receivable 30,000 Bank Liabilities Share Capital General Reserve P & L Account 6% Debentures Creditors O/S Expenses Rs. 2,00,000 60,000 1,00,000 1,00,000 60,000 20,000 5,40,000 7,70,000 Amount Rs. Amount Rs. 2,00,000 3,00,000 1,00,000 80,000 1,00,000 1,60.000 1,00,000 1,60,000 20,000 40,000 20,000 30,000 5,40,000 7,70,000
- Reference is made to the 2022 Balance Sheet of Tram-Ropes limited. Tram-Ropes Limited Balance Sheet 2022 Cash Acc. Receivable Marketable securities Inventories Fixed Assets Total Assets i. 1,000,000.00 ii. 12,000,000.00 3,000,000.00 7,500,000.00 26,500,000.00 50,000,000.00 Accounts Payable Notes Payable Long-term Debt Common stock Preferred Stock Total Liabilities and Equity 8,000,000.00 8,500,000.00 20,000,000.00 7,500,000.00 6,000,000.00 Additional Information: The Long-Term debt consists of 8% annual coupon bonds, with 15 years to maturity and are currently selling for 95% of par. The company's common shares which have a book value of $20 per share are currently selling at $25 per share. 50,000,000.00The current ratio is O a solvency measure that indicates the margin of safety for bondholders O calculated by dividing current liabilities by current assets calculated by subtracting current liabilities from current assets O used to evaluate a company's liquidity and short-term debt-paying ability Question 19 On the statement of cash flows, a $9,000 gain on the sale of fixed assets would be O added to net income in converting the net income reported on the income statement to cash flows from operating activities O deducted from net income in converting the net income reported on the income statement to cash flows from operating activities O deducted from dividends declared in converting the dividends declared to the cash flows from financing activities related to dividends O added to dividends declared in converting the dividends declared to the cash flows from financing activities related to dividendsQuestion No.1 The following information is available on the Qazi Traders: BALANCE SHEET AS OF DECEMBER 31, 2020 (IN THOUSANDS)Cash and marketable securities Rs. 500 Accounts payable Rs. 400Accounts receivable ? Bank loan ?Inventories ? Accruals 200Current assets ? Current liabilities ?Long-term debt 2650 Net Fixed Assets ? Common stock and retainedearnings 3,750Total assets ? Total liabilities and equity ?..........................._________________________________________..................... INCOME STATEMENT FOR 2020 (IN THOUSANDS)Credit sales Rs.8,000Cost of goods sold ?Gross profit ?Selling and administrative expenses ?Interest expense 400Profit before taxes ?Taxes (44% rate) ?Profit after taxes ? OTHER INFORMATION ,Current ratio 3 to 1Depreciation Rs.500Net profit margin 7%Total liabilities/shareholders’ equity 1 to 1Average collection period 45 daysInventory turnover ratio 3 to 1Assuming that sales and production are steady throughout a 360-day year, complete the balancesheet and…
- Current Attempt in Progress The following data were taken from the balance sheet accounts of Oriole Corporation on December 31, 2024. Current assets Debt investments (trading) Common stock (par value $10) Paid-in capital in excess of par Retained earnings a. b. $590,000 630,000 C. 501,000 Prepare the required journal entries for the following unrelated items. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record entries in the order displayed in the problem statement.) 162,000 870,000 A 4% stock dividend is (1) declared and (2) distributed at a time when the market price per share is $45. The par value of the common stock is reduced to $2 with a 5-for-1 stock split. A dividend is declared January 5, 2025, and paid January 25, 2025, in bonds held as an investment. The bonds have a book value of…Which of the following would not be presented in the financing activities section of the statement of cash flows? Multiple Choice Issuing of preferred stock Repayment of long-term bonds payable Purchased a new office building by issuing a note payable Purchased treasury stock HH NextView Policies Current Attempt in Progress Using the following balance sheet and income statement data, what is the debt to assets ratio? Current assets $31500 Net income $41100 Stockholders' Current liabilities 15400 79400 equity Average assets 162500 Total liabilities 42300 Total assets 114000 Average common shares outstanding was 15500. 37 percent O 70 percent O 15 percent O 28 percent Attempts: 0 of 1 used Save for Later
- The Divirgil Company Net Income is $100. Given the following items: Purchase of debt securities (trading) $7 Amortization of Premium on Bonds Payable $4 Sale of Treasury Stock at cost $5 Increase in Dividends Payable $2 Increase in Retained Earnings $92 Change in Cash for the year is: Select one: $74 b. $84 $77 d. $78 e. $88 a. C.Reference is made to the 2022 Balance Sheet of Tran-Ropes limited. Tram-Ropes Limited Balance Sheet 2022 Cash Acc. Receivable Marketable securities Inventories Fixed Assets Total Assets 1,000,000.00 ii. 12,000,000.00 3,000,000.00 7,500,000.00 26,500,000.00 50,000,000,00 Accounts Payable Notes Payable Long-term Debt Common stock Preferred Stock Total Liabilities and Equity 8,000,000.00 8,500,000.00 20,000,000.00 7,500,000.00 6,000,000.00 50,000,000.00 Additional Information: 1. The Long-Term debt consists of 8% annual coupon bonds, with 15 years to maturity and are currently selling for 95% of par. The company's common shares which have a book value of $20 per share are currently selling at $25 per share. iii. iv. V. Preferred shares have a book value of $100 per share. These shares are currently selling at $120 per share and pays dividends of 6% per annum on book value. The dividend growth rate is expected to be 3%, and dividend for 2823 is projected to be $5.00 per share. The…From the following Balance Sheet of Sami Ltd You are required to prepare a Cash Flow Statement ? Liabilities Share Capital Creditors P&L a/c TOTAL 2018 (OR) 300,000 105,000 15,000 420,000 2019 (OR) 375,000 67,500 34,500 477,000 Assets Cash Debtors Stock Land TOTAL 2018 (OR) 45,000 180,000 120,000 75,000 420,000 2019 (OR) 70,500 172, 500 135,000 99,000 477,000