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How much is the liquidation value per share of Jevan Company?

How much is the liquidation value per share of Jevan Company?

FINANCIAL ACCOUNTING
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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Jevan Company reported below balances based on its accounting books records. Jevan Company has 50,000 outstanding shares. 2. ASSETS Cash Accounts Receivable Allowance for Doubtful Accounts Inventories Prepaid Expense Property, Plant and Equipment Accumulated Depreciation P500,000 P150,000 P50,000 P25,000 P20,000 P700,000 P100,000 LIABILITIES Accounts Payable Notes Payable Other Liabilities P200,000 P45,000 P20,000 Jevan Company is undergoing financial problems and management would like to assess liquidation value as part of their strategy formulation. If assets will be realized, they will only realize amount based on below table: ASSET Amount realizable 85% Accounts receivable, net Inventories 45% 25% Prepaid Expense PPE, net 80% How much is the liquidation value per share of Jevan Company? a.) P18.78 b.) P22.60 c.) P16.33 d.) P18.87 e.) P13.63
Transcribed Image Text:Jevan Company reported below balances based on its accounting books records. Jevan Company has 50,000 outstanding shares. 2. ASSETS Cash Accounts Receivable Allowance for Doubtful Accounts Inventories Prepaid Expense Property, Plant and Equipment Accumulated Depreciation P500,000 P150,000 P50,000 P25,000 P20,000 P700,000 P100,000 LIABILITIES Accounts Payable Notes Payable Other Liabilities P200,000 P45,000 P20,000 Jevan Company is undergoing financial problems and management would like to assess liquidation value as part of their strategy formulation. If assets will be realized, they will only realize amount based on below table: ASSET Amount realizable 85% Accounts receivable, net Inventories 45% 25% Prepaid Expense PPE, net 80% How much is the liquidation value per share of Jevan Company? a.) P18.78 b.) P22.60 c.) P16.33 d.) P18.87 e.) P13.63
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