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Xavier Company is going through a Chapter 7 bankruptcy. All assets have been liquidated, and the company retains only $26,900 in free cash. The following
Xavier Company is going through a Chapter 7 bankruptcy. All assets have been liquidated, and the company retains only $26,900 in free cash. The following debts, totaling $46,550, remain:
Government claims to unpaid taxes | $ | 7,700 |
Salary during last month owed to Mr. Key (not an officer) | 19,525 | |
Administrative expenses | 4,150 | |
Salary during last month owed to Ms. Rankin (not an officer) | 6,925 | |
Unsecured accounts payable | 8,250 | |
Indicate how much money will be paid to the creditor associated with each debt. Admin expense 4150 Salary owed for last month to Mr. Kay and Ms Rankin?________ Government claim to unpaid taxes?_______ |
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