Voluntary

settlementslong dashPayments

Jacobi Supply Company recently ran into certain financial difficulties that have resulted in the initiation of voluntary settlement procedures. The firm currently has

$160 comma 000160,000

in outstanding debts and approximately

$80 comma 00080,000

in liquidatable short-term assets. Indicate, for each of the following plans, whether the plan is an extension, a composition, or a combination of the two. Also indicate the cash payments and timing of the payments required of the firm under each plan.

a.Each creditor will be paid

4646

cents on the dollar immediately, and the debts will be considered fully satisfied.

b.Each creditor will be paid

7272

cents on the dollar in two quarterly installments of

5050

cents and

2222

cents. The first installment is to be paid in 90 days.

c.Each creditor will be paid the full amount of its claims in three installments of

5656

cents,

2222

cents, and

2222

cents on the dollar. The installments will be made in 60-day intervals, beginning in 60 days.

d.A group of creditors with claims of

$54 comma 00054,000

will be immediately paid in full; the rest will be paid

9090

cents on the dollar, payable in 90 days.

First Drop down menu of each question is asking composition, combination, or extension. The others are from doing the math. A for example is

Voluntary settlementsPayments Jacobi Supply Company recently ran into certain financial difficulties that have resulted in the initiation of voluntary settlement procedures. The firm currently has $160,000 in outstanding debts and approximately $80,000 in liquidatable short-term assets. Indicate, for each of the following plans, whether the plan is an extension, a composition, or a combination of the two. Also indicate the cash payments and timing of the payments required of the firm under each plan. a. Each creditor will be paid 46 cents on the dollar immediately, and the debts will be considered fully satisfied. b. Each creditor will be paid 72 cents on the dollar in two quarterly installments of 50 cents and 22 cents. The first installment is to be paid in 90 days. c. Each creditor will be paid the full amount of its claims in three installments of 56 cents, 22 cents, and 22 cents on the dollar. The installments will be made in 60-da intervals, beginning in 60 days. d. A group of creditors with claims of $54,000 will be immediately paid in full; the rest will be paid 90 cents on the dollar, payable in 90 days. a. Each creditor will be paid 46 cents on the dollar immediately, and the debts will be considered fully satisfied. The settlement is 7. Creditors will be paid $ y now. (Select from the drop-down menus.) b. Each creditor will be paid 72 cents on the dollar in two quarterly installments of 50 cents and 22 cents. The first installment is to be paid in 90 days. The settlement is v. Creditors will be paid $ Vin 90 days and $ in 180 days. (Select from the drop-down menus.) c. Each creditor will be paid the full amount of its claims in three installments of 56 cents, 22 cents, and 22 cents on the dollar. The installments will be made in 60-da intervals, beginning in 60 days. The settlement is V. Creditors will be paid $ v in 60 days, $ 7 in 120 days, and $ in 180 days. (Select from the drop-down menus.) d. A group of creditors with claims of $54,000 will be immediately paid in full; the rest will be paid 90 cents on the dollar, payable in 90 days. V. Some creditors will be paid $ now and the remaining creditors will be paid $ vin 90 days. (Select from the The settlement is dron-down menus) a composition a combination an extension Creditors will be paid $ Vnow. (Select s on the dollar in two q ints of 80,000 Creditors will be paid $ ays and 35,200 95,400 amount of its claims in s of 56 73,600 Creditors will be paid $ 54,000 ays, $ 1; the re 35,200 f $54,000 will be imme 89,600 Some creditors will be paid $| V now and