Mandich Co. had the following amounts for its assets, liabilities, and stockholders' equity accounts just before filing a bankruptcy petition and requesting liquidation:

-What amount would the company have expected to pay for every dollar of unsecured liability without priority?

Question

Mandich Co. had the following amounts for its assets, liabilities, and stockholders' equity accounts just before filing a bankruptcy petition and requesting liquidation:
 
-What amount would the company have expected to pay for every dollar of unsecured liability without priority?

Quizplus · Accepted Answer

To calculate the amount the company would expect to pay for every dollar of unsecured liability without priority, divide the total unsecured liabilities by the total unsecured claims. In this case, $63,600,000 ÷ $127,200,000 = $.50, so the answer is C.