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Softa [21]
3 years ago
10

Claims to Funds. Paul had a great job as a bank executive. Unfortunately, his bank came under scrutiny by federal regulators and

while Paul had done nothing illegal, he ended up being fired. Unfortunately for Paul, he had a number of debts. Among his assets were a house worth $250,000 on which he owed $150,000 to a bank that held a security interest; three vehicles; an expensive watch worth $5,000; and $120,000 in an Individual Retirement Account "IRA". He owed $900 per month in child support to his ex-wife Suzy and was behind on payments in the amount of $1,800. He also owed $2,000 in wages consisting of four months of back pay to Bob who took care of Paul's landscaping needs and swimming pool care. Unable to find a job and believing that he had no other option, Paul filed for Chapter 7 bankruptcy. All debtors angrily demanded payment from liquidation of Paul's assets. Paul, on the other hand, claims that he needs all the above-mentioned assets and that he should not have to give up anything. Only federal bankruptcy exemptions apply to Paul's case. Which of the following parties has first claim to proceeds from the house?
a. The bank with the security interest. Suzy. Sam.
b. Suzy and Sam with each having a 50% interest.
c. The bank, Suzy, and Sam with each having a 1/3 interest.
Business
1 answer:
Goshia [24]3 years ago
5 0

Answer: the bank with security interest.

Explanation:

The federal bankruptcy exemptions are list of exemptions which are available to bankruptcy filers. The bankruptcy exemptions determine what an individual is allowed to keep during and after the Chapter 7 bankruptcy.

Since the federal bankruptcy exemption is applicable to Paul's case, the party who has the first claim to proceeds from the house is the bank with security interest.

Suzy and Sam will not have the first claim to proceeds from the house, because the house is under mortagage and the bank gets the first right to take over the house during bankruptcy.

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Working capital is ______. Multiple select question. treated as a cash inflow when released at the end of a project. not discoun
Nitella [24]

Answer:

treated as a cash inflow when released at the end of a project.

Explanation:

A statement of cash flows is also known as cash flow statement and it is a financial statement which is used to illustrate how changes in income and various account of the balance sheet affect cash and cash equivalents.

The statement of cash flows is also used by financial experts or accountants to breakdown the cash-flow analysis into;

1. Cash-flow from operating activities

2. Cash-flow from investing activities.

3. Cash-flow from financing activities.

Basically, a cash inflow can be defined as an amount of money that flows into a business.

In Financial accounting, working capital is calculated by subtracting the value of current liabilities from current assets.

Working capital often increases when a new project is taking up, is treated as a cash inflow when released at the end of a project and it's typically treated as a cash-outflow if it's required at the start (beginning) of a project.

5 0
3 years ago
Randy’s Pizza delivers pizzas to dormitories and apartments near a major state university. The company's annual fixed costs are
marusya05 [52]

Answer:

Please see answers below

Explanation:

A. For break even point

= fixed expenses - Contribution margin per unit

Where,

Contribution margin per unit = Sales per unit - Variable cost per unit

= $11 - $4

= $7

Therefore,

Break even points in unit = $58,800 ÷ $7

= 8,400 pizzas

B. Target profit

The break even point = Fixed costs expenses + Target profit / Contribution margin per unit

= ($58,800 + $54,000) / $7

= $112,800 / $7

= 16,114 pizzas

C. Margin of safety in dollars

= (Total sales - Break even in sales) * Selling price per unit

= ( 9,900 - 8,400 ) * $11

= 1,500 * $11

= $16,500

D. Contribution margin in lay man's term.

Contribution margin is when a firm makes or produces a product and then sold it, the difference that is left after deducting variable costs(costs associated with the sales like cost of raw materials used in producing the product) from the the sales of such product is the contribution margin.

4 0
4 years ago
Xaq-vbct-cix<br> heres a code for whoever wants to join my meeting for fun
mrs_skeptik [129]

Answer:

maybe later

Explanation:

4 0
3 years ago
Read 2 more answers
Because monopoly firms do not have to compete with other firms, the outcome in a market with a monopoly a. is often not in the b
olchik [2.2K]

Answer:

a. is often not in the best interest of society. 

Explanation:

A monopoly is when there is a single firm operating in an industry. This is usually so because of high barriers to entry of other firms.

Because a monopoly has only one firm in the industry, the firm sets prices to maximise profit. The firm earns economic profit in the short and long run.

The monopoly benefits the producer more than consumers. It is often inefficient and fails to maximise total welfare .

Because of these inefficiencies, government usually steps in to regulate the activities of a monopoly.

I hope my answer helps you.

4 0
3 years ago
Some people argue that air is not an economic good. Explain why you agree or
adell [148]

Answer:

Answer:I agree with this statement to a certain degree as air cannot be brought and sold it’s the only thing that can’t be taken physically from someone even if you are poor or don’t own much money u are a blé to breath without the need to think of expenses

Explanation:

4 0
3 years ago
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