Justin Corporation filed a petition under Chapter 7 of the bankruptcy act in January 2011. On March 15, 2011, the trustee provided the following information about the corporation’s financial affairs.
| Book Values | Estimated Realizable Values |
Assets |
|
|
Cash | $20,000 | $20,000 |
Accounts receivable—net | 100,000 | 75,000 |
Inventories | 150,000 | 70,000 |
Plant assets—net | 250,000 | 280,000 |
Total assets | $520,000 |
|
Liabilities |
|
|
Liability for priority claims | $80,000 |
|
Accounts payable—unsecured | 150,000 |
|
Note payable, secured by accounts receivable | 100,000 |
|
Mortgage payable, secured by all plant assets | 220,000 |
|
Total liabilities | $550,000 |
|
REQUIRED
1. Determine the amount expected to be available for unsecured claims.
2. Determine the expected recovery per dollar of unsecured claims.
3. Estimate the amount of recovery for each class of creditors.
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.