Question

suppose that forever 21 corporation has total assets of 3578000, common stock of 939000, and retained earnings of 576000 at december 31, 2025. what are the creditors claims on their assets at that date

Answer 1

Assets-common stock-retained earnings=assets

3578000-939000-576000=31, 2025

There are 1,750,975 creditors' claims against their assets.

A creditor's claim, also known as a proof of claim, is a document submitted to a bankruptcy or probate court to prove a debt owing to that person or business. The contents of the claim will vary depending on the jurisdiction and circumstances, but it typically includes precise information about the debt, how it occurred, and proof of the debt. Whether it be during bankruptcy or probate procedures, a creditor must submit a creditor's claim in order to recover any debt; otherwise, they run the risk of other creditors and beneficiaries taking control of all the assets. This is required so that estates can distribute assets in accordance with the rules set forth by wills and bankruptcy courts to make sure creditors are compensated.

To learn more about creditors' claims here

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