A company that was to be liquidated had the following liabilities: Income taxes$10,400Notes payable (secured by land) 156,000Accounts payable$107,900Salaries payable to employees ($15,000 for John Jay and $2,800 for Ann Still 17,800Bonds payable 81,000Administrative expenses for liquidation 26,000??The company had the following assets:? Book Fair Value ValueCurrent assets$104,000$42,900Land 130,000 117,000Buildings & equipment 130,000 143,000?Required:?Prepare a schedule to show the amount of assets available for unsecured creditors after payment of liabilities with priority.
What will be an ideal response?
| Assets available after payment of liabilities with priority: | |||
| Total available to pay priority liabilities with priority and unsecured creditors* | $ | 185,900 | |
| Total liabilities with priority | (52,050 | ) | |
| Total available for unsecured creditors after liabilities with priority | $ | 133,850 | |
? | ? | ||
| *Assets to pay priority and unsecured creditors: | ||
| Current assets | $ | 42,900 |
| Buildings and equipment | 143,000 | |
| Total | $ | 185,900 |
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What would be the value of cell B8? (Hint: look at the chart.)
a) 5,842.21
b) 6,565.08
c) 6,831.29
d) 6,978.91
e) 7,105.54
Relative to external recruitment, internal recruitment
A. results in candidates with less relevant skills and knowledge. B. tends to be more effective in bringing fresh ideas to the organization. C. provides managers a wider pool of candidates. D. takes less time. E. is more costly.
All of the following are arguments in favor of using an applicant's credit record in personal lines underwriting EXCEPT
A) Most consumers have good credit records and benefit when credit history is used as a rating factor. B) Use of credit data in underwriting and rating eliminates price discrimination against minority groups when they purchase insurance. C) Underwriting and rating may be more consistent if applicants' credit histories are considered. D) There is high correlation between an applicant's credit record and future claims experience.
Godina Products, Inc., has a Receiver Division that manufactures and sells a number of products, including a standard receiver that could be used by another division in the company, the Industrial Products Division, in one of its products. Data concerning that receiver appear below: Capacity in units 58,000Selling price to outside customers$89Variable cost per unit$35Fixed cost per unit (based on capacity)$42?The Industrial Products Division is currently purchasing 10,000 of these receivers per year from an overseas supplier at a cost of $81 per receiver.?Assume that the Receiver Division is selling all of the receivers it can produce to outside customers. Does there exist a transfer price that would make both the Receiver and Industrial Products Division financially better off
than if the Industrial Products Division were to continue buying its receivers from the outside supplier? A. Yes, both divisions are always better off regardless of whether the selling division has enough idle capacity to handle all of the buying division's needs. B. Yes, the minimum transfer price that the selling division should be willing to accept is less than the maximum transfer price that the buying division should be willing to accept. C. No, the minimum transfer price that the selling division should be willing to accept exceeds the maximum transfer price that the buying division should be willing to accept. D. The answer cannot be determined from the information that has been provided.