REFERENCE: Ref.13_02
Mandich Co.had the following amounts for its assets,liabilities,and stockholders' equity accounts just before filing a bankruptcy petition and requesting liquidation:
Of the salaries payable,$35,000 was owed to an officer of the company.The remaining amount was owed to salaried employees who had not been paid within the previous 80 days: John Webb was owed $10,600,Samantha Jones was owed $15,000,Sandra Johnson was owed $11,900,and Dennis Roberts was owed $2,500.The maximum owed for any one employee's claims for contributions to benefit plans was $800.Estimated expense for administering the liquidation amounted to $40,000.
-On a statement of financial affairs,what amount would have been shown as free assets available to pay liabilities with priority and unsecured creditors?

Question

REFERENCE: Ref.13_02
Mandich Co.had the following amounts for its assets,liabilities,and stockholders' equity accounts just before filing a bankruptcy petition and requesting liquidation:
  Of the salaries payable,$35,000 was owed to an officer of the company.The remaining amount was owed to salaried employees who had not been paid within the previous 80 days: John Webb was owed $10,600,Samantha Jones was owed $15,000,Sandra Johnson was owed $11,900,and Dennis Roberts was owed $2,500.The maximum owed for any one employee's claims for contributions to benefit plans was $800.Estimated expense for administering the liquidation amounted to $40,000.
-On a statement of financial affairs,what amount would have been shown as free assets available to pay liabilities with priority and unsecured creditors?

Quizplus · Accepted Answer

Net realizable value of: Cash + A/R + Inventory net of note payable + Land + Building

REFERENCE: Ref.13_02 Mandich Co.had the Following Amounts for Its Assets,liabilities,and Stockholders' Equity