Shi Company is going through a Chapter 7 bankruptcy. All assets have been liquidated, and the...

 

Transcribed Image Text:

Shi Company is going through a Chapter 7 bankruptcy. All assets have been liquidated, and the company retains only $27,000 in free cash. The following debts, totaling $47,050, remain: Government claims to unpaid taxes Salary during last month owed to Mr. Key (not an officer) Administrative expenses $ 7,800 19,625 4,250 Salary during last month owed to Ms. Rankin (not an officer) Unsecured accounts payable 7,025 8,350 Indicate how much money will be paid to the creditor associated with each debt. Types of Debts Amounts Administrative expenses $ 4.250 Salary during last month owed to Mr. Key and Ms. Rankin $ 20.575 Government claims to unpaid taxes $ 2.175 Shi Company is going through a Chapter 7 bankruptcy. All assets have been liquidated, and the company retains only $27,000 in free cash. The following debts, totaling $47,050, remain: Government claims to unpaid taxes Salary during last month owed to Mr. Key (not an officer) Administrative expenses $ 7,800 19,625 4,250 Salary during last month owed to Ms. Rankin (not an officer) Unsecured accounts payable 7,025 8,350 Indicate how much money will be paid to the creditor associated with each debt. Types of Debts Amounts Administrative expenses $ 4.250 Salary during last month owed to Mr. Key and Ms. Rankin $ 20.575 Government claims to unpaid taxes $ 2.175

Answer rating: 100% (QA)

In a Chapter 7 bankruptcy the debtors assets are liquidated to pay off creditors The available cash ... View the full answer