Question

Ball Company is facing bankruptcy proceedings. A balance sheet dated June 30, 2012, and other information are presented below:

Ball Company Balance Sheet
June 30, 2012
Cash................ $ 20,400
Accounts Receivable (net)...... 170,000
Inventory............ 180,000
Property and Equipment (net) ......430,000
Total Assets............ $800,400
Accounts Payable......... $350,000
Accrued Wages......... 120,000
Notes Payable............ 200,000
Common Stock........... 400,000
Retained Earnings (deficit)....... (269,600)
Total Equities........... $800,400
Estimated realizable values of the company's assets are:
Accounts Receivable........ $ 95,000
Inventory............ 110,000
Property and Equipment...... 320,000
Accounts receivable and inventory are each pledged as security on individual notes payable in the amount of $100,000 each.

Required:
Prepare a statement of affairs and determine the estimated settlement per dollar for general unsecured creditors. (Assume that all accrued wages are priority items.)



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  • CreatedMarch 13, 2015
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