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The Walston Company is to be liquidated and has the following liabilities: Income taxes $ 11,800 Notes payable (secured by land) 128,000 Accounts payable 89,000
| The Walston Company is to be liquidated and has the following liabilities: |
| Income taxes | $ | 11,800 |
| Notes payable (secured by land) | 128,000 | |
| Accounts payable | 89,000 | |
| Salaries payable (evenly divided between two employees) | 8,000 | |
| Bonds payable | 74,000 | |
| Administrative expenses for liquidation | 24,000 | |
| The company has the following assets: |
| Book Value | Fair Value | |||
| Current assets | $ | 84,000 | $ | 39,000 |
| Land | 104,000 | 94,000 | ||
| Buildings and equipment | 104,000 | 123,000 | ||
| How much money will the holders of the notes payable collect following liquidation? |
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Value Based Management For Accounts Receivable
Authors: Kimberly Don Ketron
1505911184, 978-1505911183
