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timurjin [86]
3 years ago
11

A central question that must be addressed in bankruptcy proceedings is whether the firm's inability to meet scheduled interest p

ayments results from a temporary cash flow problem or from a potentially permanent problem caused by falling asset values. True False
Business
1 answer:
dexar [7]3 years ago
6 0

Answer:

The statement is: True.

Explanation:

Bankruptcy<em> </em><em>is the legal state of a person or company which has become permanently insolvent or, in other words, incapable of repaying unpaid debts on time.</em>  Although there are several forms of bankruptcy filings, this procedure is intended to determine a structured and equitable settlement of debt obligations.

Bankruptcy proceedings may start with a petition filed by a borrower or when a petition is filed on behalf of a company's creditors.

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Alexis Company was started in Year 1. At the end of Year 1 the Company had the following accounting equation.Assets = Liabilitie
swat32

Answer:

Company's assets at the end of Year 2 were provided by creditors = 20%

Explanation:

<u>Calculation of Cash at the end of Year 2 </u>

Cash balance at the end of Year 1     $600

Less: Paid off to notes payable          ($500)

Add: Earned cash revenue                 $700

Less: Paid cash expenses                   ($400)

Less: Paid cash dividend                     <u>($100)</u>

Cash balance at the end of Year 2    <u>$300</u>

Notes payable at the end of Year 2 = Beginning balance - Paid off

= $1,000 - $500

= $500

<u>Calculation of Notes Payable at the end of Year 2 </u>

Notes Payable at the end of Year 1     $1000

Less: Paid off to notes payable            <u>($500)</u>

Notes Payable at the end of Year 2 <u>$500</u>

Total assets at the end of Year 2 = Cash + Land

= $300+2200

= $2500

Creditors at the end of the Year 2 (Notes payable) = $500

Company's assets at the end of Year 2 were provided by creditors = Creditors * 100 / Total assets

= $500 * 100 / $2500

= 20%

5 0
2 years ago
Monty Company expects to have a cash balance of $58,410 on January 1,
hodyreva [135]

Answer:

The ending cash balance of Jan is $ 68145 which is more than $58,410 . We get this balance after the borrowings. The cash balance is $   18172 for February .

Explanation:

<em>Monty Company </em>

<em>Cash Budget</em>

<em>                                            January         February</em>

Beginning Cash Balance        58410           35695

Add Receipts    

Collections from Customers 110330           194700

Sale of Marketable Securities 15576             0

Total Receipts                         125906          194700

Total available Cash               184316           230395

Less Disbursements

Direct Materials                   $64,900,         $97,350

Direct labor:                         $38,940,        $58,410

Manufacturing overhead:    $27,258,        $32,450

Depreciation                            ($1,947)      ( $1,947)  

Selling and

Administrative expenses:       $19,470,    $25,960.    

Total Disbursements              148,621       212,223  

Excess                                       35,695        18172

Financing

Add Borrowings                       $32,450         0

Less Repayments                       0                  0

Ending Cash Balance              68145           18172

Receipts are added to the cash balance to get the total available cash .

Total cash disbursements are subtracted from the total available cash to find the excess amount from which the repayments are subtracted and borrowings are added to get the ending cash balance.

8 0
3 years ago
When a purchaser authorizes a broker to collect their commission from the listing broker or seller pursuant to an Exclusive Righ
Serjik [45]

Answer:

4. The obligation for payment of the commission is whichever compensation arrangement box is checked.

Explanation:

Exclusive right-to-buy contracts is one of the most common buyer-broker agreement between buyers and brokers or sellers.

This agreement outlines the obligations of the broker, the broker-agent relationship, and the responsibilities of the buyer.

Whatever is agreed on between the buyer and the seller or broker is the obligation for payment of commission and this will be strictly adhered to by both parties.

4 0
3 years ago
Polls to answer :
horsena [70]
Age: 15
oldest age: 16
siblings: 1
7 0
3 years ago
A net worth statement, financial goals, and a budget are all part of a _____.
Gemiola [76]
A net worth statement, financial goals, and a budget are all part of a financial plan.
5 0
2 years ago
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