Margaret has $3,200 cash after selling off her television, DVD player, and computer. She has debts of $4,800 owing to the following creditors: Anna $900
Bob's Shop $1,500
Hyatt's $2,100
Jones $300
If they all agree to a composition agreement, how much will Hyatt's be able to collect?

Question

Quizplus · Accepted Answer

Hyatt's will be able to collect $1,400 because the total debts are $4,800 and Margaret has $3,200 cash. So, the creditors will receive 3200/4800 * 100 = 66.67% of their debts. Hyatt's debt is $2,100, so they will receive 66.67% of $2,100 = $1,400.

Margaret Has $3,200 Cash After Selling Off Her Television, DVD