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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) Cash Accounts receivable Merchandise inventory Buildings Equipment Land Total cash available to stockholders 16,500 4,840 82,500 103,840 $ (103,840)

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) Cash Accounts receivable Merchandise inventory Buildings Equipment Land Total cash available to stockholders 16,500 4,840 82,500 103,840 $ (103,840)

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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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) Cash Accounts receivable Merchandise inventory Buildings Equipment Land Total cash available to stockholders 16,500 4,840 82,500 103,840 $ (103,840)
Transcribed Image Text: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) Cash Accounts receivable Merchandise inventory Buildings Equipment Land Total cash available to stockholders 16,500 4,840 82,500 103,840 $ (103,840)
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 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. to the bilitie uded in the balance sheet, $2,365 is owed to employees heir work sin the pay period, and interest of $5,375 has accrued on notes payable and long-term debt. 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.
Transcribed Image Text: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 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. to the bilitie uded in the balance sheet, $2,365 is owed to employees heir work sin the pay period, and interest of $5,375 has accrued on notes payable and long-term debt. 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.
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