DistressedJon is unrgoing liquidaion. Relevart ihlorJon asShown beiow:ASSETSCarryingAmountNet RealizableValueP250,000150,000600,0001,700,000P2,700,000CashAccounts ReceivableEquipment-netLandP300,000355,649200,0001,500,000P2,355,649TOTAL ASSETSLIABILITIESAccounts PayableSalaries PayableNotes PayableLoan PayableCarryingAmountP1,000,000500,000SettlementAmountP1,000,000500,000805,234800,000P3,105,234800,000800,000P3,100,000TOTAL LIABILITIESEQUITYShare CapitalRetained EarningsCapital DeficiencyP1,600,000(2,000,000)(400,000)TOTAL LIABILITIES & EQUITYP2,700,000Additional Information:• Administrative expenses amounting to P180,744 are expected to be incurred during the liquidationprocess.• The equipment is pledged to the loan payable.QUESTIONS:1. How much are the total free assets?2. How much are the unsecured liabilities with priority?3. How much are the total unsecured liabilities without priority?4. How much are the net free assets?5. What is the estimated deficiency?6. What is the estimated recovery percentage?7. What is the amount paid to unsecured creditors without priority?8. What is the amount paid to partially secured creditors?

The given question has more than 3 subparts so as per the policy of the company only the first 3…

QUESTIONS: 1. How much are the total free assets? 2 How much are the unsecured liabilities with priority? 3. How much are the total unsecured liabilities without priority? 4. How much are the net free assets? 5. What is the estimated deficiency? 6. What is the estimated recovery percentage? 7. What is the amount paid to unsecured creditors without priority? 8. What is the amount paid to partially secured creditors?

QUESTIONS: 1. How much are the total free assets? 2 How much are the unsecured liabilities with priority? 3. How much are the total unsecured liabilities without priority? 4. How much are the net free assets? 5. What is the estimated deficiency? 6. What is the estimated recovery percentage? 7. What is the amount paid to unsecured creditors without priority? 8. What is the amount paid to partially secured creditors?

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter12: Corporate Valuation And Financial Planning

Section: Chapter Questions

Problem 6Q: Suppose a firm makes the following policy changes listed. If a change means that external,...

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