Wright Company recently petitioned for bankruptcy and is now in the process of preparing a statement of
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Question:
Wright Company recently petitioned for bankruptcy and is now in the process of preparing a statement of affairs. The carrying values and estimated fair values of the assets of Wright Company are as follows:
- Carrying Value Fair Value
- Cash $10,000 $10,000
- Accounts Receivable 60,000 20,000
- Inventory 70,000 40,000
- Land 90,000 75,000
- Building (net) 200,000 150,000
- Equipment (net) 80,000 25,000
- Total $510,000 $320,000
- Debts of Wright are as follows:
- Accounts Payable $40,000
- Wages Payable (all have priority) 6,000
- Taxes Payable 12,000
- Notes Payable (secured by receivables and inventory) 90,000
- Interest on Notes Payable 5,000
- Bonds Payable (secured by land and buildings) 200,000
- Interest on Bonds Payable 8,000
- Total $361,000
1. Based on the preceding information, what is the total amount of unsecured claims?
A. $52,000
B. $71,000
C. $75,000
D. $95,000
2. Based on the preceding information, what estimated amount will be available for general unsecured creditors upon liquidation?
A. $34,000
B. $52,000
C. $56,000
D. $75,000
3. Based on the preceding information, what is the estimated dividend percentage?
A. 45 percent
B. 55 percent
C. 61 percent
D. 69 percent
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