D. The Statement of Financial Position of Air Supply Corporation as of year-end is presented: Current...

Transcribed Image Text:

D. The Statement of Financial Position of Air Supply Corporation as of year-end is presented: Current assets (NRV of P5M) P8,200,000 Property, plant and equipment (NRV of P6M) 7,500,000 Other assets 1,000,000 Total Assets P16,700,000 Accounts payable (secured by Receivables with NRV P3.2M) P6,000,000 Loans payable (secured by PPE with NRV of (4.8M) 8,000,000 Contributed capital 3,400,000 Retained earnings (Deficit) (700,000) Total Liabilities and Equity P16,700,000 Compute for the following: 11. Estimated deficiency to unsecured claims 12. Total free assets available to unsecured claims 13. Expected amount to be received by loans payable group of creditors D. The Statement of Financial Position of Air Supply Corporation as of year-end is presented: Current assets (NRV of P5M) P8,200,000 Property, plant and equipment (NRV of P6M) 7,500,000 Other assets 1,000,000 Total Assets P16,700,000 Accounts payable (secured by Receivables with NRV P3.2M) P6,000,000 Loans payable (secured by PPE with NRV of (4.8M) 8,000,000 Contributed capital 3,400,000 Retained earnings (Deficit) (700,000) Total Liabilities and Equity P16,700,000 Compute for the following: 11. Estimated deficiency to unsecured claims 12. Total free assets available to unsecured claims 13. Expected amount to be received by loans payable group of creditors

Answer rating: 100% (QA)

To compute the requested values we need to determine the net realizable value NRV for the relevant a... View the full answer