UT LUUICII t 1. Chapter 7 When the Beacon Computer Company filed for bankruptcy under Chapter 7 of the U.S. bankruptcy code, it had the following balance sheet information: Liquidating Value Claims Trade credit Secured mortgage notes Senior debentures Junior debentures Equity $ 4,900 7,600 13,000 16,000 -5,900 Total assets $35,600 ming there are no legal fees associated with the bankruptcy, as trust. tribution of liquidating value do you propose? 2. Chapter 11 when the Master Printing Comp the Master Printing Company filed for bankruptcy, it filed under Chapter 11 of the U.S. bankruptcy code. Key information is shown here: Assets Claims Mortgage bonds Senior debentures Junior debentures Book equity $27,000 12,100 8,500 -10.100 Going concern value $37,500 As a trustee, what reorganization plan would you accept? 3. Z-Score Fair-to-Midland Manufacturing, Inc. (FMM), has applied for a loan at True Credit Bank. Jon Fulkerson, the credit analyst at the bank, has gathered the following information from the company's financial statements: Total assets EBIT Net working capital Book value of equity Accumulated retained earnings Sales $115,000 7,900 4,100 23,000 19,600 112,000 TI c. 1. 700 117hat nd Problems 1. Chapter 7 When the Beacon Computer Company filed for bankruptcy under Chapter of the U.S. bankruptcy code, it had the following balance sheet information: Liquidating Value Claims Trade credit Secured mortgage notes Senior debentures Junior debentures Equity $ 4,900 7,600 13,000 16,000 -5,900 Total assets $35,600 ming there are no legal fees associated with the bankrup tribution of liquidating value do you propose? ith the bankruptcy, as a trustee, what dis- 2. Chapter 11 When the Master Printing Chapter 11 of the U.S. bankruptcy code. N Chapter on the Master Printing Company filed for bankruptcy, it filed under he U.S. bankruptcy code. Key information is shown here: Assets Claims Mortgage bonds Senior debentures Junior debentures Book equity $27,000 12,100 8,500 -10,100 Going concern value $37,500 As a trustee, what reorganization plan would you accept? 3. Z-Score Fair-to-Midland Manufacturing, Inc. (FMM), has applied for a loan at True Fair-to-Midland Manufacturing, Credit Bank. Jon Fulkerson, the credit analyst at the bank, has gathered the following information from the company's financial statements: Total assets EBIT Net working capital Book value of equity Accumulated retained earnings Sales $115,000 7.900 4,100 23,000 19,600 112,000 The stock price of FMM is $31 per share and there are 7,800 shares outstanding. What is the Z-score for this company
