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Kimber Company is in the process of liquidating and going out of business. The firm's accountant has provided the following balance sheet and additional information: Assets Cash Accounts receivable Merchandise inventory Total current assets Land Buildings and equipment Less: Accumulated depreciation Total land, buildings, and equipment Total assets Liabilities and Stockholders' Equity Accounts payable Notes payable Total current liabilities Long-term debt Total liabilities Stockholders' Equity: Common stock, no par Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 16,500 60,500 110,000 $ 48,000 348,000 (194,500) $ 46,600 58,300 $ 110,000 120,300 $ 187,000 201,500 $ 388,500 $ 104,900 53,300 $ 158,200 230,300 $ 388,500 It is estimated that all but 8 percent of the accounts receivable can be collected, and that the merchandise inventory can be disposed of in a liquidation sale for 75 percent of its cost. Buildings and equipment can be sold at $60,000 above book value (the difference between original cost and accumulated depreciation shown on the balance sheet), and the land can be sold at its current appraisal value of $61,500. In addition to the liabilities included in the balance sheet, $2,365 is owed to employees for their work since the last pay period, and interest of $5,375 has accrued on notes payable and long-term debt.

Kimber Company is in the process of liquidating and going out of business. The firm's accountant has provided the following balance sheet and additional information: Assets Cash Accounts receivable Merchandise inventory Total current assets Land Buildings and equipment Less: Accumulated depreciation Total land, buildings, and equipment Total assets Liabilities and Stockholders' Equity Accounts payable Notes payable Total current liabilities Long-term debt Total liabilities Stockholders' Equity: Common stock, no par Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 16,500 60,500 110,000 $ 48,000 348,000 (194,500) $ 46,600 58,300 $ 110,000 120,300 $ 187,000 201,500 $ 388,500 $ 104,900 53,300 $ 158,200 230,300 $ 388,500 It is estimated that all but 8 percent of the accounts receivable can be collected, and that the merchandise inventory can be disposed of in a liquidation sale for 75 percent of its cost. Buildings and equipment can be sold at $60,000 above book value (the difference between original cost and accumulated depreciation shown on the balance sheet), and the land can be sold at its current appraisal value of $61,500. In addition to the liabilities included in the balance sheet, $2,365 is owed to employees for their work since the last pay period, and interest of $5,375 has accrued on notes payable and long-term debt.

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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eBook Print References Required: Calculate the amount of cash that will be available to the stockholders if the accounts receivable are collected, the other assets are sold as described, and all liabilities and other claims are paid in full. Total cash available (including sale of assets) Accounts payable Notes payable Long-term debt Wages payable Interest payable 46,600 58,300 53,300 2,365 5,375 $ 378,840 165,940 Total cash available to stockholders $ 212,900 *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted.
Transcribed Image Text:eBook Print References Required: Calculate the amount of cash that will be available to the stockholders if the accounts receivable are collected, the other assets are sold as described, and all liabilities and other claims are paid in full. Total cash available (including sale of assets) Accounts payable Notes payable Long-term debt Wages payable Interest payable 46,600 58,300 53,300 2,365 5,375 $ 378,840 165,940 Total cash available to stockholders $ 212,900 *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted.
Problem 2-18 (Algo) Calculate cash available upon liquidation of business LO 2-2, 2-3, 2-6 5 Kimber Company is in the process of liquidating and going out of business. The firm's accountant has provided the following balance sheet and additional information: Assets Cashi Accounts receivable. Merchandise inventory Total current assets Land Buildings and equipment Less: Accumulated depreciation Total land, buildings, and equipment. Total assets Liabilities and Stockholders' Equity Accounts payable Notes payable Total current liabilities Long-term debt Total liabilities Stockholders' Equity: Common stock, no par Retained earnings. Total stockholders' equity Total liabilities and stockholders' equity $ 16,500 60,500 110,000 Required: Sala $ 48,000 348,000 (194,500) $ 46,600 58,300 $ 110,000 120,300 $ 187,000 201,500 $ 388,500 $ 104,900 53,300 $ 158, 200 230,300 $ 388,500 It is estimated that all but 8 percent of the accounts receivable can be collected, and that the merchandise inventory can be disposed of in a liquidation sale for 75 percent of its cost. Buildings and equipment can be sold at $60,000 above book value (the difference between original cost and accumulated depreciation shown on the balance sheet), and the land can be sold at its current appraisal value of $61,500. In addition to the liabilities included in the balance sheet, $2,365 is owed to employees for their work since the last pay period, and interest of $5,375 has accrued on notes payable and long-term debt. - dll... --11--4-a dhe --------
Transcribed Image Text:Problem 2-18 (Algo) Calculate cash available upon liquidation of business LO 2-2, 2-3, 2-6 5 Kimber Company is in the process of liquidating and going out of business. The firm's accountant has provided the following balance sheet and additional information: Assets Cashi Accounts receivable. Merchandise inventory Total current assets Land Buildings and equipment Less: Accumulated depreciation Total land, buildings, and equipment. Total assets Liabilities and Stockholders' Equity Accounts payable Notes payable Total current liabilities Long-term debt Total liabilities Stockholders' Equity: Common stock, no par Retained earnings. Total stockholders' equity Total liabilities and stockholders' equity $ 16,500 60,500 110,000 Required: Sala $ 48,000 348,000 (194,500) $ 46,600 58,300 $ 110,000 120,300 $ 187,000 201,500 $ 388,500 $ 104,900 53,300 $ 158, 200 230,300 $ 388,500 It is estimated that all but 8 percent of the accounts receivable can be collected, and that the merchandise inventory can be disposed of in a liquidation sale for 75 percent of its cost. Buildings and equipment can be sold at $60,000 above book value (the difference between original cost and accumulated depreciation shown on the balance sheet), and the land can be sold at its current appraisal value of $61,500. In addition to the liabilities included in the balance sheet, $2,365 is owed to employees for their work since the last pay period, and interest of $5,375 has accrued on notes payable and long-term debt. - dll... --11--4-a dhe --------
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