Sonia, a retailer, has the following assets: a factory worth $1 million; accounts receivable amounting to $750,000,

Question:

Sonia, a retailer, has the following assets: a factory worth $1 million; amounting to $750,000, which fall due in four to six months; and $20,000 cash in the bank. Sonia’s sole liability is a $200,000 note falling due today, which she is unable to pay. Can Sonia be forced into involuntary bankruptcy under the Bankruptcy Code?

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...