Hampton Company is trying to decide whether to seek liquidation or reorganization. Hampton has provided the following balance sheet: Additional information is as follows:The investments are currently worth $13,000.It is estimated that $32,000 of the accounts receivable are collectible.The inventory can be sold for $74,000.The prepaid expenses and the intangible assets have no net realizable value.The land and building are currently valued at $250,000.The equipment can be sold for $60,000.Administrative expenses (not yet recorded) are estimated to be $12,500.Accrued expenses include $17,000 of salaries payable ($11,000 to one employee and $3,000 each to two other employees).Accrued expenses include $7,000 of unpaid payroll taxes.How much will Hampton's creditor of an unsecured accounts payable of $4,000 receive? (Round your payout percentage to the nearest whole number.)

Question

Hampton Company is trying to decide whether to seek liquidation or reorganization. Hampton has provided the following balance sheet:  Additional information is as follows:The investments are currently worth $13,000.It is estimated that $32,000 of the accounts receivable are collectible.The inventory can be sold for $74,000.The prepaid expenses and the intangible assets have no net realizable value.The land and building are currently valued at $250,000.The equipment can be sold for $60,000.Administrative expenses (not yet recorded) are estimated to be $12,500.Accrued expenses include $17,000 of salaries payable ($11,000 to one employee and $3,000 each to two other employees).Accrued expenses include $7,000 of unpaid payroll taxes.How much will Hampton's creditor of an unsecured accounts payable of $4,000 receive? (Round your payout percentage to the nearest whole number.)

Quizplus · Accepted Answer

The Answer of Hampton Company is trying to decide whether to seek liquidation or reorganization. Hampton has provided the following balance sheet:  Additional information is as follows:The investments are currently worth $13,000.It is estimated that $32,000 of the accounts receivable are collectible.The inventory can be sold for $74,000.The prepaid expenses and the intangible assets have no net realizable value.The land and building are currently valued at $250,000.The equipment can be sold for $60,000.Administrative expenses (not yet recorded) are estimated to be $12,500.Accrued expenses include $17,000 of salaries payable ($11,000 to one employee and $3,000 each to two other employees).Accrued expenses include $7,000 of unpaid payroll taxes.How much will Hampton's creditor of an unsecured accounts payable of $4,000 receive? (Round your payout percentage to the nearest whole number.)

Hampton Company Is Trying to Decide Whether to Seek Liquidation