QUESTION 6 - WORTH 20 POINTS Warwick Company is trying to decide whether to seek liquidation or reorganization. Warwick has provided the following balance sheet: Warwick Company Balance Sheet February 13, 2019 $ 1,000 28,000 46,500 72,000 4,200 $151,700 Current Assets: Cash Investments Accounts receivable Inventory Prepaid expenses Plant & Equipment Land Building Equipment Intangibles Total assets $ 65,000 180,000 75,300 320,300 78,000 $550,000 $ 127,000 99,000 68,000 $294,000 Current Liabilities: Accounts payable Accrued expenses Notes payable (secured by inventory) Long-term Liabilities Notes payable (secured by land and building) Stockholders' Equity Common stock Retained earnings (deficit) Total Liabilities and Stockholders' Equity 300,000 $ 100,000 (144,000) (44,000) $550,000 QUESTION 6 - WORTH 20 POINTS Warwick Company is trying to decide whether to seek liquidation or reorganization. Warwick has provided the following balance sheet: Warwick Company Balance Sheet February 13, 2019 $ 1,000 28,000 46,500 72,000 4,200 $151,700 Current Assets: Cash Investments Accounts receivable Inventory Prepaid expenses Plant & Equipment Land Building Equipment Intangibles Total assets $ 65,000 180,000 75,300 320,300 78,000 $550,000 $ 127,000 99,000 68,000 $294,000 Current Liabilities: Accounts payable Accrued expenses Notes payable (secured by inventory) Long-term Liabilities Notes payable (secured by land and building) Stockholders' Equity Common stock Retained earnings (deficit) Total Liabilities and Stockholders' Equity 300,000 $ 100,000 (144,000) (44,000) $550,000