The following information were taken from the Statement of Affairs of ABC Corp. as August 31,2011:P 60,000Fully secured creditorsPartially secured creditorsUnsecured liabilities with priorityUnsecured liabilities without priorityAssets pledged with fully secured creditors (FMV P150,000)Assets pledged with partially secured creditors (FMV P104,000)Free assets (FMV P80,000)120,00014,000224,000180,000148,000140,000Compute the following:• The amount that will be paid to fully secured creditors isThe amount that will be paid to unsecured creditors with priority isThe amount to be paid to partially secured creditors isThe amount to be paid to unsecured creditors is

A secured liability is a debt whose payment is guaranteed by an asset. If the proceeds from the sale…

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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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LO 10-5 Corporation E10-10 Calculating and Interpreting the Debt-to-Assets Ratio and Times Interest Earned Ratio At May 31, 2019, FedEx Corporation reported the following amounts (in millions) in its financial statements: Total Assets Total Liabilities Interest Expense Income Tax Expense Net Income game Tot 1500 2019 $54,400 36,600 ainuoms 21000056 590 115 540 2018 $52,330 32,900 560 220 4,570
On January 1, 2025, Artic Inc. had the following balance sheet: Cash Total Debt investments (available-for-sale) 363,000 $434,000 Assets Interest revenue ARTIC INC. BALANCE SHEET AS OF JANUARY 1, 2025 ARTIC INC. INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2025 $11,000 Gain on sale of investments Net income $71,000 Common stock (a) The accumulated other comprehensive income related to unrealized holding gains on available-for-sale debt securities. The fair value of Artic Inc.'s available-for-sale debt securities at December 31, 2025, was $310,000; its cost was $277,000. No debt securities were purchased during the year. Artic Inc.'s income statement for 2025 was as follows: (Ignore income taxes.) 28,000 $39,000 (Assume all transactions during the year were for cash.) Accumulated other comprehensive income Total Equity $389,000 Debit 45,000 $434,000 Prepare the journal entry to record the sale of the available-for-sale debt securities in 2025. (Credit account titles are…
The balance sheet of National Company on December 31, 2020, with related current fair value data, was as follows: National Company Balance Sheet (prior to business combination) December 31, 2020 Carrying Amounts Current Fair Values Assets Current assets $180,000 640,000 $ 220,000 700,000 Plant assets (net) Intangible assets (net) (All recognizable under generally accepted accounting principles for business combinations.) Total assets Liabilities and Stockholders' Equity Current liabilities 80,000 $900,000 90,000 $1,010,000 $ 80,000 190,000 $ 270,000 $ 80,000 200,000 $280,000 $400,000 220,000 $620,000 $900,000 Long-term debt Total liabilities Common stock, no par or stated value Retained earnings Total stockholders’ equity Total liabilities and stockholders’ equity On December 31, 2020, United Corporation issued $200,000 common stock, $2 par value ($3 fair value) and paid $188,120, for all the net assets of National. Out of pocket costs paid by united, totaled $40,000, for legal fees to…
Mondesto Company has the following debts: Unsecured creditors Liabilities with priority Secured liabilities: Debt 1, $246,000; value of pledged asset Debt 2, $206,000; value of pledged asset Debt 3, $138,000; value of pledged asset $ 248,000 128,000 Selling value of free assets 198,000 118,000 176,000 The company also has a number of other assets that are not pledged in any way. The creditors holding Debt 2 want to receive at least $170,800. For how much do the free assets have to be sold so that the creditors associated with Debt 2 will receive exactly $170,800?
Identifying and Computing Net Operating Assets (NOA) and Net Nonoperating Obligations (NNO)Following are the balance sheets and statement of earnings for Home Depot Inc. for fiscal year ended February 3, 2019, which the company labels fiscal year 2018. THE HOME DEPOT INC. Consolidated Balance Sheets February 3, January 28, $ millions, except par value 2019 2018 Assets Current assets Cash and cash equivalents $1,778 $3,595 Receivables, net 1,936 1,952 Merchandise inventories 13,925 12,748 Other current assets 890 638 Total current assets 18,529 18,933 Net property and equipment 22,375 22,075 Goodwill 2,252 2,275 Other assets 847 1,246 Total assets $44,003 $44,529 THE HOME DEPOT INC. Consolidated Balance Sheets February 3, January 28, $ millions, except par value 2019 2018 Liabilities and Stockholders’ Equity Current liabilities Short-term debt $1,339 $1,559 Accounts payable 7,755 7,244 Accrued salaries and…
Directions: Click the Case Link above and use the information provided in Revolutionary Designs, Inc., Part B, to answer this question: What is the impact on Revolutionary Design's adjusted debt ratio (total liabilities less subordinated debt) to adjusted tangible net worth (tangible net worth plus subordinated debt) if we assume that the owner debt will no longer be subordinated in 20Y3? Adjusted debt to adjusted tangible net worth will increase from approximately 2.7 to approximately 3.8 in 2013. Adjusted debt to adjusted tangible net worth will improve from approximately 3.5 to approximately 2.6 in 20Y3. Adjusted debt to adjusted tangible net worth will increase from approximately 3.5 to approximately 3.8 in 20Y3. Bookmark for review
Veltri Incorporated has the following assets and liabilities (assets are stated at net realizable value): Assets pledged with secured creditors $ 80,000 Assets pledged with partially secured creditors 70,000 Other assets 180,000 Secured liabilities 40,000 Partially secured liabilities 95,000 Liabilities with priority 55,000 Unsecured liabilities 225,000 In a liquidation, how much money would be paid on the partially secured liabilities?

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