Novak Company at December 31 has cash $44,500, noncash assets $214,000, liabilities $120,000, and the following capital balances: Hoffman $91,000 and Mena $47,500. The firm is liquidated, and $230,000 in cash is received for the noncash assets. Hoffman and Mena income ratios are 60% and 40%, respectively. (If an amount reduces the account balance then enter with a negative sign preceding the number eg. -15,000 or parentheses eg. (15,000).) Prepare a schedule of cash payments. NOVAKCOMPANY Schedule of Cash Payments

Novak Company at December 31 has cash $44,500, noncash assets $214,000, liabilities $120,000, and the following capital balances: Hoffman $91,000 and Mena $47,500. The firm is liquidated, and $230,000 in cash is received for the noncash assets. Hoffman and Mena income ratios are 60% and 40%, respectively. (If an amount reduces the account balance then enter with a negative sign preceding the number eg. -15,000 or parentheses eg. (15,000).) Prepare a schedule of cash payments. NOVAKCOMPANY Schedule of Cash Payments

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter24: Bankruptcy, Reorganization, And Liquidation

Section: Chapter Questions

Problem 1P: Southwestern Wear Inc. has the following balance sheet: The trustees costs total 281,250, and the...

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On July 1, Fisher Company sold 2,650,000 in accounts receivable for cash of 2,500,000. the factor withheld 10% of the cash proceeds to allow for possible customer returns and other adjustments. An Allowance For bad debts of 300,000 had previously been established by Fisher in relation to these accounts. What Was The Loss on Factoring Recognized by Fisher Company?
Martinez Company at December 31 has cash $46,500, noncash assets $212,000, liabilities $130,000, and the following capital balances: Hoffman $93,000 and Mena $35,500. The firm is liquidated, and $225,000 in cash is received for the noncash assets. Hoffman and Mena income ratios are 60% and 40%, respectively. (If an amount reduces the account balance then enter with a negative sign preceding the number e.g. -15,000 or parentheses e.g. (15,000).) Prepare a schedule of cash payments.
The Dubious Company operates in an industry where all sales are made on account. The company has experienced bad debt losses of 1.70% of credit sales in prior periods. Presented below is the company's forecast of sales and expenses over the next three years. Year 1 Year 2 Year 3 Sales Revenue $ 375,000 $ 381,000 $ 380,000 Bad Debt Expense Unknown Unknown Unknown Other Expenses 334,000 337,000 334,750 Net Income Unknown Unknown Unknown Required: Calculate Bad Debt Expense and net income for each of the three years, assuming uncollectible accounts are estimated as 1.70% of sales. Assume that the company changes its estimate of uncollectible credit sales to 1.70% in Year 1, 2.70% in Year 2 and 2.20% in Year 3. Calculate the Bad Debt Expense and net income for each of the three years under this alternative scenario.
Lloyd Inc. has sales of $600,000, a net income of $36,000, and the following balance sheet: ROE will -Select- Cash Receivables Inventories by X $ 652,800 Long-term debt 367,200 Common equity $1,020,000 Total liabilities and equity The new owner thinks that inventories are excessive and can be lowered to the point where the current ratio is equal to the industry average, 2x, without affecting sales or net income. If inventories are sold and not replaced (thus reducing the current ratio to 2x), if the funds generated are used to reduce common equity (stock can be repurchased at book value), and if no other changes occur, by how much will the ROE change? Do not round intermediate calculations. Round your answer to two decimal places. percentage points. $ Total current assets Net fixed assets Total assets 70,380 Accounts payable 174,420 Notes payable to bank 408,000 Total current liabilities What will be the firm's new quick ratio? Do not round intermediate calculations. Round your answer…
Lloyd Inc. has sales of $150,000, a net income of $16,500, and the following balance sheet: Cash Receivables Inventories Total current assets Net fixed assets Total assets The new owner thinks that inventories are excessive and can be lowered to the point where the current ratio is equal to the industry average, 2.5x, without affecting sales or net income. If inventories are sold and not replaced (thus reducing the current ratio to 2.5x), if the funds generated are used to reduce common equity (stock can be repurchased at book value), and if no other changes occur, by how much will the ROE change? Do not round intermediate calculations. Round your answer to two decimal places. percentage points. s new quick ratio? Do not round intermediate calculations. Round your answer to two decimal places. ROE wil ✔ -Select- y increase decrease What w $ 19,125 Accounts payable 70,500 Notes payable to bank 180,000 Total current liabilities $269,625 Long-term debt 105,375 Common equity $375,000 Total…
Southwestern Wear Inc. has the following balance sheet: The trustees costs total 281,250, and the firm has no accrued taxes or wages. The debentures are subordinated only to the notes payable. If the firm goes bankrupt and liquidates, how much will each class of investors receive if a total of 2.5 million is received from sale of the assets?
At the end of 20-3, Martel Co. had 410,000 in Accounts Receivable and a credit balance of 300 in Allowance for Doubtful Accounts. Martel has now been in business for three years and wants to base its estimate of uncollectible accounts on its own experience. Assume that Martel Co.s adjusting entry for uncollectible accounts on December 31, 20-2, was a debit to Bad Debt Expense and a credit to Allowance for Doubtful Accounts of 25,000. (a) Estimate Martels uncollectible accounts percentage based on its actual bad debt experience during the past two years. (b) Prepare the adjusting entry on December 31, 20-3, for Martel Co.s uncollectible accounts.
The Dubious Company operates in an industry where all sales are made on account. The company has experienced bad debt losses of 1.90% of credit sales in prior periods. Presented below is the company's forecast of sales and expenses over the next three years. Year 3 $ 374,000 Year 2 $ 375,000 Unknown 333,000 Unknown 335,750 Unknown Unknown Sales Revenue Bad Debt Expense Other Expenses Net Income Year 1 $ 369,000 Unknown 340,000 Unknown Required: a. Calculate Bad Debt Expense and net income for each of the three years, assuming uncollectible accounts are estimated as 1.90% of sales. b. Assume that the company changes its estimate of uncollectible credit sales to 1.90% in Year 1, 2.90% in Year 2 and 2.40% in Year 3. Calculate the Bad Debt Expense and net income for each of the three years under this alternative scenario.
Alpaca Corporation had revenues of $220,000 in its first year of operations. The company has not collected on $19,800 of its sales and still owes $27,000 on $90,000 of merchandise it purchased. The company had no inventory on hand at the end of the year. The company paid $10,500 in salaries. Owners invested $16,000 in the business and $16,000 was borrowed on a five-year note. The company paid $2,200 in interest that was the amount owed for the year, and paid $7,200 for a two-year insurance policy on the first day of business. Alpaca has an effective income tax rate of 30%. Compute net income for the first year for Alpaca Corporation.
Alpaca Corporation had revenues of $275,000 in its first year of operations. The company has not collected on $19,400 of its sales and still owes $27,500 on $98,500 of merchandise it purchased. The company had no inventory on hand at the end of the year. The company paid $13,200 in salaries. Owners invested $16,500 in the business and $16,500 was borrowed on a five-year note. The company paid $4,200 in interest that was the amount owed for the year, and paid $8,200 for a two-year insurance policy on the first day of business. Alpaca has an effective income tax rate of 40%. (Assume taxes are paid in the same year). Compute the cash balance at the end of the first year for Alpaca Corporation.
if the form has a NEGATIVE beginning balance of net monetary assets as $ (50,000), during the year the firm has 5 250,000 inflows and S (120,000) as an outflow. the CPI for the beginning of year, the average of year and end of year were 150, 160 and 170 respectively. The loss from purchasing power is a S883 $1,458 other amount .d $1,176
Hahn Company uses the percentage of sales method for recording bad debt expense. For the year, cash sales are RM300,000 and credit sales are RM1,500,000. Management estimates that 1% is the sales percentage to use. What adjusting entry will Hahn Company make to record the bad debt expense? O A. Bad Debt Expense . 18,000 Allowance for Doubtful Accounts 18,000 O B. Bad Debt Expense . 15,000 Allowance for Doubtful Accounts 15,000 O C. Bad Debt Expense 15,000 Accounts Receivable . 15,000 O D. Bad Debt Expense 18,000 Accounts Receivable 18,000