Mr. Litz hires a liquidator to help him. Through this person's services, the accounts receivable are...

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Mr. Litz hires a liquidator to help him. Through this person's services, the accounts receivable are collected in full. The supplies are sold for $500; the equipment is sold for $2,000; the boats are sold for $20,350; and the property is sold for $180,000. The liquidator charges $1,500. BAYLINER BOAT CHARTERS BALANCE SHEET October 31, 2007 Assets Bank Accounts Receivable Supplies Property Equipment Boats $ Liabilities 900 Bank Loan 1,050 Accounts Payable 1,250 Mortgage Payable 175,000 Total Liabilities 4,390 Owner's Equity 32,850 J. Litz, Capital Total Liabilities and $ 18,000 3,740 80,000 $ 101,740 113,700 Total Assets $ 215,440 A. Prepare a detailed calculation showing how much Mr. Litz will receive as a result of his claim against the assets. Owner's Equity $ 215,440 B. Why would the owner prefer to sell the business itself rather than the assets? Mr. Litz hires a liquidator to help him. Through this person's services, the accounts receivable are collected in full. The supplies are sold for $500; the equipment is sold for $2,000; the boats are sold for $20,350; and the property is sold for $180,000. The liquidator charges $1,500. BAYLINER BOAT CHARTERS BALANCE SHEET October 31, 2007 Assets Bank Accounts Receivable Supplies Property Equipment Boats $ Liabilities 900 Bank Loan 1,050 Accounts Payable 1,250 Mortgage Payable 175,000 Total Liabilities 4,390 Owner's Equity 32,850 J. Litz, Capital Total Liabilities and $ 18,000 3,740 80,000 $ 101,740 113,700 Total Assets $ 215,440 A. Prepare a detailed calculation showing how much Mr. Litz will receive as a result of his claim against the assets. Owner's Equity $ 215,440 B. Why would the owner prefer to sell the business itself rather than the assets?

Answer rating: 100% (QA)

A Particulars Accounts receivable Supplies Equipment Boats Amount 1050 500 2000 20350 Property Les... View the full answer