Olds Company declares Chapter 7 bankruptcy. Following are the book values of the asset and liability accounts at that time. A bankruptcy expert estimates that administrative expense will total $15,000. Cash Accounts receivable Inventory Land (secures note A) Building (secures bonds) Equipment Accounts payable Taxes payable to government Note payable A Note payable B Bonds payable $ 27,000 63,000 73,000 (valued at $31,000) (valued at $59,000) 203,000 (valued at $163,000) 403,000 (valued at $326,000) 123,000 (value unknown) 183,000 23,000 176,000 253,000 303,000 The holders of note payable B want to collect at least $101,200. Required: To achieve this goal, how much does the company have to receive in the liquidation of its equipment?

Olds Company declares Chapter 7 bankruptcy. Following are the book values of the asset and liability accounts at that time. A bankruptcy expert estimates that administrative expense will total $15,000. Cash Accounts receivable Inventory Land (secures note A) Building (secures bonds) Equipment Accounts payable Taxes payable to government Note payable A Note payable B Bonds payable $ 27,000 63,000 73,000 (valued at $31,000) (valued at $59,000) 203,000 (valued at $163,000) 403,000 (valued at $326,000) 123,000 (value unknown) 183,000 23,000 176,000 253,000 303,000 The holders of note payable B want to collect at least $101,200. Required: To achieve this goal, how much does the company have to receive in the liquidation of its equipment?

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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Bonita Corporation experienced a fire on December 31, 2022, in which its financial records were partially destroyed. It has been able to salvage some of the records and has ascertained the following balances. December 31, 2022 December 31, 2021 Cash $33,500 $ 10,000 Accounts receivable (net) 75,500 130,000 Inventory 194,000 177,000 Accounts payable 51,500 87,000 Notes payable 33,000 58,500 Common stock, $100 par 412,000 412,000 Retained earnings 103,000 100,000 Additional information: 1. The inventory turnover is 2.6 times. 2. The return on common stockholders' equity is 30%. The company had no additional capital accounts. 3. The accounts receivable turnover is 8.7 times. 4. The return on assets is 12.5%. 5. Total assets at December 31, 2021, were $612,000. Compute the following for Bonita Corporation. (a) Cost of goods sold for 2022 $ 482,300 (b) Net credit sales for 2$ 893925 (c) Net income for 2022 2$ 154050 (d) Total assets at December 31, 2022 2$ The answer to (d) is not 1,232,400
Bonita Corporation experienced a fire on December 31, 2022, in which its financial records were partially destroyed. It has been able to salvage some of the records and has ascertained the following balances. December 31, 2022 December 31, 2021 Cash $ 33,500 $ 10,000 Accounts receivable (net) 75,500 130,000 Inventory 194,000 177,000 Accounts payable 51,500 87,000 Notes payable 33,000 58,500 Common stock, $100 par 412.000 412.000 Retained earnings 103,000 100,000 Additional information: 1. The inventory turnover is 2.6 times. 2. The return on common stockholders' equity is 30%. The company had no additional capital accounts. 3. The accounts receivable turnover is 8.7 times. 4. The return on assets is 12.5%. 5. Total assets at December 31, 2021, were $612,000. Compute the following for Bonita Corporation. (a) Cost of goods sold for 2022 $ 482,300 (b) Net credit sales for 2022. $ 893925 (c) Net income for 2022 2$ 154050 (d) Total assets at December 31, 2022 $
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