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Creditors of Jones Corporation are considering petitioning the courts to force the company into Chapter 7 Bankruptcy. The following information has been determined. Adminsitrative expenses
| Creditors of Jones Corporation are considering petitioning the courts to force the company into Chapter 7 Bankruptcy. | |||||
| The following information has been determined. | |||||
| Adminsitrative 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 | NRV | ||||
| Cash | $6,000 | $6,000 | |||
| A/R | $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 | |||
| N/P (Secured by Land) | $65,000 | ||||
| N/P (Secured by Buildings) | $78,000 | ||||
| Bonds Payabe (Secured by Equipment) | $115,000 | ||||
| Accounts Receivable | $70,000 | ||||
| Salaries Payable (two weeks salary for 3 pp) | $6,000 | ||||
| Taxes Payable | $10,000 | ||||
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