Rockee Corporation, a bio-tech firm, has found itself in financial difficulty and may file for bankruptcy.Rockee's Statement of Affairs reflects the following summary information:
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?
$$\begin{array} { l r }
\text { Book value of assets } & \$ 700,000 \
\text { Net realizable value of assets } & 370,000 \
\text { Total liabilities } & 400,000 \
\text { Secured claims } & 250,000 \
\text { Unsecured claims with priority } & 30,000
\end{array}$$ Required:
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Compute the following:
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a.The deficiency traceable to unsecured creditors with priority
?
?
b.The dividend to general unsecured creditors without priority.?
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c.Rockee owes Flint Corporation $9,000 secured by inventory that is expected to realize $7,000.How much can Flint expect to receive on this claim?
?
?

Question

Rockee Corporation, a bio-tech firm, has found itself in financial difficulty and may file for bankruptcy.Rockee's Statement of Affairs reflects the following summary information:
?
?
 $$\begin{array} { l r } 
\text { Book value of assets } & \$ 700,000 \
\text { Net realizable value of assets } & 370,000 \
\text { Total liabilities } & 400,000 \
\text { Secured claims } & 250,000 \
\text { Unsecured claims with priority } & 30,000
\end{array}$$ Required:
?
Compute the following:
? 
a.The deficiency traceable to unsecured creditors with priority
?
?
b.The dividend to general unsecured creditors without priority.?
?
c.Rockee owes Flint Corporation $9,000 secured by inventory that is expected to realize $7,000.How much can Flint expect to receive on this claim?
?
?

Quizplus · Accepted Answer

The Answer of Rockee Corporation, a bio-tech firm, has found itself in financial difficulty and may file for bankruptcy.Rockee's Statement of Affairs reflects the following summary information:
?
?
 $$\begin{array} { l r } 
\text { Book value of assets } & \$ 700,000 \
\text { Net realizable value of assets } & 370,000 \
\text { Total liabilities } & 400,000 \
\text { Secured claims } & 250,000 \
\text { Unsecured claims with priority } & 30,000
\end{array}$$ Required:
?
Compute the following:
? 
a.The deficiency traceable to unsecured creditors with priority
?
?
b.The dividend to general unsecured creditors without priority.?
?
c.Rockee owes Flint Corporation $9,000 secured by inventory that is expected to realize $7,000.How much can Flint expect to receive on this claim?
?
?

Rockee Corporation, a Bio-Tech Firm, Has Found Itself in Financial