Question

Help Save & Exit Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to Xavier Company is going through a Chapter 7 bankruptcy. All assets have been liquidated, and the company retains only $25,800 in free cash. The following debts, totaling $41.050, remain Government claims to unpaid taxes $6.600 Salary during last month owed to Mr. Rey (not an office) 10,425 Administrative expenses 3,050 Salary during last month owed to Ms. Rankin (not an officer) 5.525 Unsecured accounts payable 7.150 Indicate how much money will be paid to the creditor associated with each debt. Answer is not complete. Amounts $ 3.050 Types of Debts Administrative expenses Salary during last month owed to Mr Key and Ms Rankin Government claims to unpaid taxes

Answer 1

Total Cash Available = $25,800

Repayments:

Administrative Expenses $3,050

Balance left $22,750

Less: Govt claims to unpaid taxes    $6,600

Balance Left $16,150

Less: Salary during last month to Mr.Key and Ms.Rankin $16,150

Balance Nil

Payment to Mr. Key and Ms. Rankin will be on proportionate basis