Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Company A has the following Data: Current assets 100.000 Non current assets 400.000 Current liabilities 110.000 Non current liabilities 385.000 Equity 5.000 They experience delays

Company A has the following Data: Current assets 100.000 Non current assets 400.000 Current liabilities 110.000 Non current liabilities 385.000 Equity 5.000

They experience delays in their payments and negative results. The delay in payments is a bit more than 2 months. Would you suggest the company to file for chapter 7 or for chapter 11, please explain why?

Company B has the following Data: Current assets 11.000 Non current assets 40.000 Current liabilities 46.000 Non current liabilities 15.000 Equity -10.000 The market value of the Non-current assets is 60.000, current assets and liabilities have the same value in the books than in the market. Company A acquires company B for a price of 120.000 with a loan from a Bank. Show the Balance Sheet of the merged company. Should the company file for Chapter 7/11, explain why.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions