. The balance sheet of Evergreen Company at June 30, 2012 contains the following items:AssetsCashP80,000Accounts receivable (net)140,000Inventories100,000Land260,000Building – net200,000Machinery – net120,000Patent100,000TotalP1,000,000 Liabilities and Stockholders' EquityAccounts PayableP 220,000Wages Payable120,000Taxes Payable20,000Mortgage Payable300,000Interest on Mortgage Payable30,000Notes Payable – unsecured100,000Interest Payable - unsecured10,000Capital Stock400,000Retained Earnings (deficit)(200,000)TotalP1,000,000The company is in financial difficulty, and its stockholders and creditors have requested a statement ofaffairs for planning purposes. The following information is available:a. The company estimates that P126,000 is the maximum amount of collectible for the accountsreceivable.b. Except for 20% of the inventory items that are damaged and worth only P4,000, the cost ofother items is expected to be recovered in full.c. The land and building have a combined appraisal value of P340,000 and are subject to theP300,000 mortgage and related accrued interest.d. The appraised value of the machinery is P40,000.Compute the following:• How much is the net free assets?• How much is the total unsecured liabilities with priority?How much is the total unsecured liabilities without priority?Compute the estimated settlement per peso of unsecured creditors.\

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Answered: The balance sheet of Evergreen Company…

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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The following items are reported on a company's balance sheet: Cash $295,700 Marketable securities 231,000 Accounts receivable (net) 265,300 Inventory 132,000 Accounts payable 330,000 Determine (a) the current ratio and (b) the quick ratio. Round to one decimal place. a. Current ratio b. Quick ratio
BBP, Inc., with sales of $600,000, has the following balance sheet: BBP, Incorporated Balance Sheet as of 12/31/X0 Assets Liabilities and Equity Cash $ 30,000 Accounts payable $ 18,000 Accounts receivable 90,000 Accruals 36,000 Inventory 108,000 Notes payable 70,000 Current assets 228,000 Current liabilities 124,000 Fixed assets 180,000 Common stock 120,000 Retained earnings 164,000 Total assets $ 408,000 Total liabilities and equity $ 408,000 The firm earns 15 percent on sales and distributes 25 percent of its earnings. Using the percent of sales, determine whether the firm will need external funds and forecast the new balance sheet for sales of $780,000 assuming that cash changes with sales and that the firm is not operating at capacity. Use newly issued short-term debt to cover any needs for additional finance. If the firm has excess funds, add them to cash. Round your answers to the nearest dollar. Enter your…
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Below are Laiho Industries' 2017 and 2018 balance sheet items: Cash Accounts Receivable Long-Term Debt Accounts Payable Common Stock (total value) Notes Payable Net Fixed Assets Accruals Inventories Retained Earnings $ $ $ $ LA $ LA $ LA $ LA LA 2018 102,850.00 103,365.00 76,264.00 30,761.00 100,000.00 $ $ $ $ Sm 16,717.00 $ 67,165.00 $ 30,477.00 $ 38,444.00 $ 57,605.00 2017 89,725.00 85,527.00 63,914.00 23,109.00 90,000.00 14,217.00 42,436.00 22,656.00 34,982.00 38,774.00 Sales for 2018 were $455,150, and EBITDA was 15% of sales. Furthermore, depreciation and amortization were 11% of net fixed assets, interest was $8,575, the corporate tax rate was 40%, and Laiho pays 40% of its net income as dividends. Given this information, construct the firm's 2018 income statement, statement of cash flows, and statement of owner's equity. Then answer the questions below.
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The balance sheet of Evergreen Company at June 30, 2012 contains the following iter Assets Cash P 80,000 Accounts receivable (net) 140,000