CHAPTER 27

The Lawn Cuttery operates successfully for five months in Chapter 11. Mr. Cash prepares financial projections, based on the operating results, indicating that a repayment plan can be proposed. Your firm prepares a plan and disclosure statement. The day before you are ready to file the documents, Mr. Cash advises you that last month his fuel expenses increased 25 percent, and all other costs are increasing prices so fast, "it's hard to keep the labels right." Advise Mr. Cash about the potential consequences of submitting inaccurate financial data in a disclosure statement.