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The balance sheet of 1680 MARKETING Corporation at August 31, 2014 contains the following items: Assets P 400, 000 700, 000 500, 000 300, 000 2, 000, 000 Cash Accounts receivable – net Inventories Land Building – net Machinery - net Goodwill 500, 000 P5.000, 000 Equities Accounts payable Wages payable Property taxes payable Mortgage payable Interest on mortgage payable Note payable - unsecured Interest payable – unsecured Capital stock Retained earnings (deficit) P1, 100, 000 600, 000 100, 000 1, 500, 000 150, 000 500, 000 50, 000 2, 000, 000 (1. 000, 000) P5. 000, 000 The company is in financial difficult and its stockholders and creditors have requested a statement of affairs for planning purposes. The following information is available: The company estimates that P370, 000 is the maximum amount collectible for the accounts receivable. v Except for 20% of the inventory items that are damaged and worth only P20, 000, the cost of other items is expected to be recovered in full. v The land and building have a combined appraisal value of P1, 700, 000 and are subject to the P1, 500, 000 mortgage and related accrued interest. * The appraised value of the machinery is P120, 000. v Wages payable and property taxes payable are unsecured priority items that do not exceed any limitation of the Bankruptcy Act. 2. How much is the estimated settlement per peso of unsecured liabilities? A. PO. 75 В. РО.40 С. РО.50 D. PO.75

The balance sheet of 1680 MARKETING Corporation at August 31, 2014 contains the following items: Assets P 400, 000 700, 000 500, 000 300, 000 2, 000, 000 Cash Accounts receivable – net Inventories Land Building – net Machinery - net Goodwill 500, 000 P5.000, 000 Equities Accounts payable Wages payable Property taxes payable Mortgage payable Interest on mortgage payable Note payable - unsecured Interest payable – unsecured Capital stock Retained earnings (deficit) P1, 100, 000 600, 000 100, 000 1, 500, 000 150, 000 500, 000 50, 000 2, 000, 000 (1. 000, 000) P5. 000, 000 The company is in financial difficult and its stockholders and creditors have requested a statement of affairs for planning purposes. The following information is available: The company estimates that P370, 000 is the maximum amount collectible for the accounts receivable. v Except for 20% of the inventory items that are damaged and worth only P20, 000, the cost of other items is expected to be recovered in full. v The land and building have a combined appraisal value of P1, 700, 000 and are subject to the P1, 500, 000 mortgage and related accrued interest. * The appraised value of the machinery is P120, 000. v Wages payable and property taxes payable are unsecured priority items that do not exceed any limitation of the Bankruptcy Act. 2. How much is the estimated settlement per peso of unsecured liabilities? A. PO. 75 В. РО.40 С. РО.50 D. PO.75

Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
10th Edition
ISBN:9781337902571
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter3: Financial Statements, Cash Flow, And Taxes
Section: Chapter Questions
Problem 19SP
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The balance sheet of 1680 MARKETING Corporation at August 31, 2014 contains the following items: Assets Cash Accounts receivable - net Inventories P 400, 000 700, 000 500, 000 300, 000 Land Building – net Machinery – net 2, 000, 000 600, 000 500, 000 P5. 000, 000 Goodwill Equities Accounts payable Wages payable Property taxes payable Mortgage payable Interest on mortgage payable Note payable – unsecured Interest payable – unsecured Capital stock Retained earnings (deficit) P1, 100, 000 600, 000 100, 000 1, 500, 000 150, 000 500, 000 50, 000 2, 000, 000 (1. 000, 000) P5. 000, 000 The company is in financial difficult and its stockholders and creditors have requested a statement of affairs for planning purposes. The following information is available: The company estimates that P370, 000 is the maximum amount collectible for the accounts receivable. Except for 20% of the inventory items that are damaged and worth only P20, 000, the cost of other items is expected to be recovered in full. The land and building have a combined appraisal value of P1, 700, 000 and are subject to the P1, 500, 000 mortgage and related accrued interest. The appraised value of the machinery is P120, 000. v Wages payable and property taxes payable are unsecured priority items that do not exceed any limitation of the Bankruptcy Act. 2. How much is the estimated settlement per peso of unsecured liabilities? A. PO. 75 В. РО.40 С. РО.50 D. PO.75
Transcribed Image Text:The balance sheet of 1680 MARKETING Corporation at August 31, 2014 contains the following items: Assets Cash Accounts receivable - net Inventories P 400, 000 700, 000 500, 000 300, 000 Land Building – net Machinery – net 2, 000, 000 600, 000 500, 000 P5. 000, 000 Goodwill Equities Accounts payable Wages payable Property taxes payable Mortgage payable Interest on mortgage payable Note payable – unsecured Interest payable – unsecured Capital stock Retained earnings (deficit) P1, 100, 000 600, 000 100, 000 1, 500, 000 150, 000 500, 000 50, 000 2, 000, 000 (1. 000, 000) P5. 000, 000 The company is in financial difficult and its stockholders and creditors have requested a statement of affairs for planning purposes. The following information is available: The company estimates that P370, 000 is the maximum amount collectible for the accounts receivable. Except for 20% of the inventory items that are damaged and worth only P20, 000, the cost of other items is expected to be recovered in full. The land and building have a combined appraisal value of P1, 700, 000 and are subject to the P1, 500, 000 mortgage and related accrued interest. The appraised value of the machinery is P120, 000. v Wages payable and property taxes payable are unsecured priority items that do not exceed any limitation of the Bankruptcy Act. 2. How much is the estimated settlement per peso of unsecured liabilities? A. PO. 75 В. РО.40 С. РО.50 D. PO.75
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