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, 000 750, 000 P 200, 000 1, 000, 000 1, 500, 000 2. 500, 000 P 5,200, 000 Cash Accounts receivable, net Inventories Plant assets – net Total 750, 000 2, 800, 000 Liabilities P 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 B. P900, 000 С. Р800, 000 D. P1, 050, 000 5. Determine the expected recovery per peso of unsecured claims. A. PO.60 B. PO.5720 С. РО.70 D. PO.6350 6. The amount of recovery to unsecured accounts payable. A. P855, 000 C. P1, 290, 000 B. P900, 000 D. P600, 000

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, 000 750, 000 P 200, 000 1, 000, 000 1, 500, 000 2. 500, 000 P 5,200, 000 Cash Accounts receivable, net Inventories Plant assets – net Total 750, 000 2, 800, 000 Liabilities P 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 B. P900, 000 С. Р800, 000 D. P1, 050, 000 5. Determine the expected recovery per peso of unsecured claims. A. PO.60 B. PO.5720 С. РО.70 D. PO.6350 6. The amount of recovery to unsecured accounts payable. A. P855, 000 C. P1, 290, 000 B. P900, 000 D. P600, 000

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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