current liabilities

Vishnu

ll.

Southwestern Wear Inc. has the following balance sheet: $1,875,000 Accounts payable 1,875,000 Notes payable Current assets Fixed assets Subordinated debentures Total debt Common equity Total assets $3,750,000 Total liabilities & equity The trustee's costs total $256,000, and the firm has no accrued taxes or wages. Southwestern has no unfunded pension liabilities. The debentures are subordinated only to the notes payable. If the firm goes bankrupt and liquidates, how much will each class of investors receive if a total of $2.7 million is received from sale of the assets? Round your answers for monetary values to the nearest dollar and for percentage values to the nearest whole number. If your answer is zero, enter "0". Enter your answers as positive values. Distribution of proceeds on liquidation: Proceeds from the sale of assets Less: 1. First mortgage (paid from the sale of fixed assets) 2. Fees and expenses of bankruptcy 3. Wages due to workers within 3 months of bankruptcy 4. Taxes…

S Olds Company declares Chapter 7 bankruptcy. The following are the book values of the asset and liability accounts at that time. A bankruptcy expert estimates that administrative expense will total $31,000. Cash Accounts receivable Inventory Land (secures note A) Building (secures bonds) Equipment Accounts payable Taxes payable to government Note payable A Note payable B Bonds payable $ 43,000 79,000 89,000 Amount to be received 219,000 (valued at $47,000) (valued at $75,000) (valued at $179,000) 419,000 (valued at $358,000) 139,000 (value unknown) 199,000 39,000 208,000 269,000 319,000 The holders of note payable B want to collect at least $134,500. To achieve this goal, how much does the company have to receive in the liquidation of its equipment? $ 238,500

17. Kiwi Corporation reports the following information: • Correction of overstatement of depreciation expense in prior years, net of tax- P215,000 • Dividends declared- P160,000 • Net income- P500,000 • Retained earnings, 1/1/21, as reported- P1,000,000 Kiwi should report retained earnings, December 31, 2021 at   a. P1,555,000. b. P1,340,000. c. P1,125,000. d. P785,000.

Company X failed to record (accrue) $5,000,000 of vendor invoices and warranty liability at year-end. As a result of this omission, the company's summary financial statements were stated as follows: Summarized Income Statement Sales                                             $50,000,000 All Cost (incl. Interest & Taxes)    $40,000,000 Net Income                                   $10,000,000 Summarized Balance Sheet                                                       This Year               Last Year Assets: All Current Assets combined           $50,000,000       $40,000,000  All Long-Term Assets combined      $50,000,000        $40,000,000  Total Assets:                                   $100,000,000       $80,000,000  Liabilities & Stockholders Equity All Current Liabilities combined         $30,000,000      $25,000,000 All Long-Term Liabilities combined   $25,000,000      $20,000,000 Stockholders Equity                          $45,000,000       $35,000,000 Total…

cardinal corporation reported pretax book income of $3,000,000 bad debt $200,000, depreciation book exceed tax $100,000, non deductible entertainment expense $50,000, fines 40,000. calculate income tax expense, deferred tax, taxable income, book equivalent, effective tax rate

A company failed to record unrealized gains of $38 million on its debt investments classified as trading securities. Its tax rate is 25%. As a result of this error, total shareholders' equity would be:

None