Question

Smith Inc is a small manufacturer located in Goobertown, AR. They have come into some bad luck and have decided to file for Chapter 7 Bankruptcy Protection. The Company has assets consisting of cash in the bank of $1,045.12, inventory of $9,227.01, equipment of $298,017.45, and real estate of $565,188.92.

The liabilities of the company include the following: utility bills for $2,003.56, credit card bills for $192,716.28, taxes owed of $201,155.87, a loan from the bank secured by the real estate for $850,000, legal fees of $17,816.08, and back wages for the previous month owed totaling $24,000.

The company has no preferred stock but has 10,000 shares of common stock.

How much will each party receive at the bankruptcy?

*(If you answered this question before, please ignore it. I hope to get new answers. Thanks)

Answer 1

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lasSMate Date Page Pay bank laan f Credlarl Pro Padicastcl bls Total lo42162 676 502-95 to4241.2 S440 ) Tobaut loa 125032 2 Credit Card Scanned with CamScanner