Smith Corp. is in the process of liquidating and going out of business. The firm has...
Smith Corp. is in the process of liquidating and going out of business. The firm has $20,000 in cash inventory totaling $1,000,000, accounts receivable of $200,000 plant and equipment with a $400,000 book value and total liabilities of $700,000. It is estimated that the inventory can be disposed of in a liquidation sale for 65% of its cost, all but 25% of the accounts receivable can be collected, and plant and equipment can be sold for 30% of net book value. Calculate the amount of cash that would be available to the stockholders if the accounts receivable are collected, the other assets are sold as described, and the liabilities are paid in full.
Homework Answers
| Computation of Amount available for stockholder-mith Corp | |
| Cash Balance available | $20,000.00 |
| Realizable Value of Inventory | $650,000.00 |
| (1000000*65%) | |
| Cash Collected from AR | $50,000.00 |
| (200000*25%) | |
| Sale Value of Plant & Equipment | $120,000.00 |
| (400000*30%) | |
| Less: Liabilities | -$700,000.00 |
| Cash Available for Stockholder | $140,000.00 |
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Smith Corp. is in the process of liquidating and going out of
business. The firm has...
Smith Corp. is in the process of liquidating and going out of business. The firm has...
Smith Corp. is in the process of liquidating and going out of business. The firm has $20,000 in cash, inventory totaling $1,000,000, accounts receivable of $200,000, plant and equipment with a $400,000 book value, and total liabilities of $700,000. It is estimated that the inventory can be disposed of in a liquidation sale for 65% of its cost, all but 25% of the accounts receivable can be collected, and plant and equipment can be sold for 30% of net book...
Smith Corp. is in the process of liquidating and going out of business. The firm has...
Smith Corp. is in the process of liquidating and going out of business. The firm has $20,000 in cash, inventory totaling $1,000,000, accounts receivable of $200,000, plant and equipment with a $400,000 book value, and total liabilities of $700,000. It is estimated that the inventory can be disposed of in a liquidation sale for 65% of its cost, all but 25% of the accounts receivable can be collected, and plant and equipment can be sold for 30% of net book...
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Kimber Co. is in the process of liquidating and going out of business. The firm’s accountant has provided the following balance sheet and additional information: Assets Cash $ 17,000 Accounts receivable 63,500 Merchandise inventory 115,000 Total current assets $ 195,500 Land $ 46,000 Buildings & equipment 348,000 Less: Accumulated depreciation (194,000 ) Total land, buildings, & equipment 200,000 Total assets $ 395,500 Liabilities and Stockholders’ Equity Accounts payable $ 45,700 Notes payable 58,600 Total current liabilities $ 104,300 Long-term debt...
Done newconnect.mheducation A c This webpage was reloaded because a problem occurred. Practice - Chapt... 0...
Done newconnect.mheducation A c This webpage was reloaded because a problem occurred. Practice - Chapt... 0 Saved ve & Exit Submit Check my work 0.83 points Circle-Square Ltd. is in the process of liquidating and going out of business. The firm's balance sheet shows $22,860 in cash, accounts receivable of $111,200, inventory totaling $63,300, plant and equipment of $262.000, and total liabilities of $307,900. It is estimated that the inventory can be disposed of in a liquidation sale for 90...
Hendrie Inc. acquired the listed assets and liabilities of Smith Corp. for $2,200,000 cash on 1...
Hendrie Inc. acquired the listed assets and liabilities of Smith Corp. for $2,200,000 cash on 1 January. The book values and fair values of the assets of Smith as of the date of acquisition were: Accounts receivable Inventory Property, plant, and equipment Land Book Value $ 245 000 320,000 490,000 295.000 Fair Value $ 245,000 540.000 740,000 590.000 In addition, Smith Corp. had liabilities totalling $510,000 at the date of acquisition and a customer list estimated to have a fair...
B,M,C Partnership Balance Sheet March 1, 2019 Assets Liabilities $ Accounts Payable $ 120,000 Cash Account...
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B,M,C Partnership Balance Sheet March 1, 2019 Assets Liabilities $ Accounts Payable $ 120,000 Cash Account Receivab...
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answer please Page 3 of 7 B, M, C Partnership Balance Sheet March 1, 2019 Liabilities...
answer please
Page 3 of 7 B, M, C Partnership Balance Sheet March 1, 2019 Liabilities $ 120,000 Assets Accounts Payable $ $ Cash Account Receivable Merchandise Inventory Plant Asses( Net) 60,000 40,000 100,000 200,000 B Capital M Capital C Capital 85,000 95,000 100,000 $ $ $ Total Assets 400,000 $ 400,000 Total Liabilities & Partner's Equity The stated ratio for B, M, Care 3:3:and & 4. Required Prepare a Partnership Liquidation schedule. (1) The accounts receivable were collected for...
Circle-Square, Ltd., is in the process of liquidating and going out of business. The firm's balance sheet shows $22,990 in cash, accounts receivable of $112,900, inventory totaling $62,200, plant and equipment of $255,000, and total liabilities of $304,200. It is estimated that the inventory can be disposed of in a liquidation sale for 80 percent of its cost, all but 10 percent of the accounts receivable can be collected, and plant and equipment can be sold for $182,580 Required: Calculate...
Done newconnect.mheducation A c This webpage was reloaded because a problem occurred. Practice - Chapt... 0 Saved ve & Exit Submit Check my work 0.83 points Circle-Square Ltd. is in the process of liquidating and going out of business. The firm's balance sheet shows $22,860 in cash, accounts receivable of $111,200, inventory totaling $63,300, plant and equipment of $262.000, and total liabilities of $307,900. It is estimated that the inventory can be disposed of in a liquidation sale for 90...
Hendrie Inc. acquired the listed assets and liabilities of Smith Corp. for $2,200,000 cash on 1 January. The book values and fair values of the assets of Smith as of the date of acquisition were: Accounts receivable Inventory Property, plant, and equipment Land Book Value $ 245 000 320,000 490,000 295.000 Fair Value $ 245,000 540.000 740,000 590.000 In addition, Smith Corp. had liabilities totalling $510,000 at the date of acquisition and a customer list estimated to have a fair...
B,M,C Partnership Balance Sheet March 1, 2019 Assets Liabilities $ Accounts Payable $ 120,000 Cash Account Receivable Merchandise Inventory Plant Asses( Net) 60,000 40,000 100,000 200,000 $ $ B Capital M Capital C Capital 85,000 95,000 100,000 $ Total Assets $ 400,000 Total Liabilities & Partner's Equity $ 400,000 The stated ratio for B, M, Care 3:3: and & 4. Required Prepare a Partnership Liquidation schedule. (1) The accounts receivable were collected for $35,000. (2) The inventory was sold for...
B,M,C Partnership Balance Sheet March 1, 2019 Assets Liabilities $ Accounts Payable $ 120,000 Cash Account Receivable Merchandise Inventory Plant Asses( Net) 60,000 40,000 100,000 200,000 $ $ B Capital M Capital C Capital 85,000 95,000 100,000 $ Total Assets $ 400,000 Total Liabilities & Partner's Equity $ 400,000 The stated ratio for B, M, Care 3:3: and & 4. Required Prepare a Partnership Liquidation schedule. (1) The accounts receivable were collected for $35,000. (2) The inventory was sold for...
answer please
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