Create an Account

Already have account?

Forgot Your Password ?

Home / Questions / Aqua Corporation filed a petition under Chapter 7 of the bankruptcy act in January, 2011.

Aqua Corporation filed a petition under Chapter 7 of the bankruptcy act in January, 2011.

Aqua Corporation filed a petition under Chapter 7 of the bankruptcy act in January, 2011. On February 28, the following information was presented regarding Aqua's financial status.

 

Book ValuesFair Values

Cash$              50,000$50,000

A/R - net              100,00090,000

Inventories80,00060,000

Fixed Assets - net              200,000230,000

 

Priority Claims80,000

A/P              100,000

N/P              110,000

Mortgage Payable              200,000

 

The Note Payable is secured by Accounts Receivable, and the Mortgage Payable is secured by the Fixed Assets.

 

Required:

Calculate the amount expected to be available for unsecured claims and the percentage recovery that the unsecured class should expect to receive.

Dec 07 2019 View more View Less

Answer (UnSolved)

question Get Solution

Related Questions