4. DDD Company provides the following balance sheet as of December 31, 2020: Current Assets (NRV of P2,500,000) PPE (NRV of P4,500,000) Other Assets (NRV P200,000) Total 3,000,000 7,500,000 650,000 11,150,000 Accounts Payable (secured by Inventories with NRV of P1,600,000) Loans Payable (secured by PPE with NRV of P2,800,000) Ordinary Shares Retained Earnings (Deficit) Total 4,500,000 5,000,000 2,500,000 (850,000) 11,150,000 Determine the following: a. Amount available to Unsecured Creditors b. Estimated Deficiency c. Amount expected to be received by Accounts Payable Creditors

4. DDD Company provides the following balance sheet as of December 31, 2020: Current Assets (NRV of P2,500,000) PPE (NRV of P4,500,000) Other Assets (NRV P200,000) Total 3,000,000 7,500,000 650,000 11,150,000 Accounts Payable (secured by Inventories with NRV of P1,600,000) Loans Payable (secured by PPE with NRV of P2,800,000) Ordinary Shares Retained Earnings (Deficit) Total 4,500,000 5,000,000 2,500,000 (850,000) 11,150,000 Determine the following: a. Amount available to Unsecured Creditors b. Estimated Deficiency c. Amount expected to be received by Accounts Payable Creditors

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 89E: Ratio Analysis Rising Stars Academy provided the following information on its 2019 balance sheet and...

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