Creditors of Jones Corporation are considering petitioning the courts to force the company into Chapter 7 bankruptcy. The following information has been determined. Administrative expenses in connection with the liquidation are estimated to be $22,000. Indicate the amount of money that each class of creditors can anticipate receiving.
|
Book Value |
Net Realizable Value |
|
|
Cash |
$6,000 |
$6,000 |
|
Accounts receivable |
32,000 |
18,000 |
|
Inventory |
45,000 |
31,000 |
|
Supplies |
3,000 |
–0– |
|
Investments |
2,000 |
8,000 |
|
Land |
60,000 |
72,000 |
|
Buildings |
90,000 |
68,000 |
|
Equipment |
50,000 |
35,000 |
|
Notes payable (secured by land) |
65,000 |
|
|
Notes payable (secured by buildings) |
78,000 |
|
|
Bonds payable (secured by equipment) |
115,000 |
|
|
Accounts payable |
70,000 |
|
|
Salaries payable (two weeks’ salary for three employees) |
6,000 |
|
|
Taxes payable |
10,000 |