which of the following words has virtually the same meaning as the word markdown? A. loss B. discount C.profit D.turnover

Problem 24-01 Liquidation Southwestern Wear Inc. has the following balance sheet: Current assets $1,875,000 Accounts payable $37

Softa [21]

Answer:

1. Proceeds from sale of assets $ 4,000,000

2. First mortgage, paid from sale of assets 0.00

3. Fees and expenses of administration of bankruptcy 276,250

4. Wages due workers earned within 3 months prior to filing of bankruptcy petition 0.00

5. Taxes 0.0

6. Unfunded pension liabilities 0.00

7. Available to general creditors $3,723,750

Distribution to general creditors

Claim (1) =$1,875,000

Application of 100% Distribution(2)=$1,875,000

After Subordination Adjustment

(3)=$1,875,000

Percentage of Original Claims Received

(4)=$1,875,000

Explanation:

Calculation for how much will each class of investors receive if a total of $4 million is received from sale of the assets

1. Proceeds from sale of assets $ 4,000,000

2. First mortgage, paid from sale of assets 0.00

3. Fees and expenses of administration of bankruptcy 276,250

4. Wages due workers earned within 3 months prior to filing of bankruptcy petition 0.00

5. Taxes 0.00

6. Unfunded pension liabilities 0.00

7. Available to general creditors $3,723,750

Distribution to general creditors:

Claims of General Creditors

Notes payable

Claim (1) 750,000

Application of 100% Distribution

(2) 750,000

After Subordination Adjustment

(3) 750,000

Percentage of Original Claims Received

(4) 100%

Accounts payable

Claim (1) 375,000

Application of 100% Distribution

(2) 375,000

After Subordination Adjustment

(3) 375,000

Percentage of Original Claims Received

(4) 100%

Subordinated debentures

Claim (1) 750,000

Application of 100% Distribution

(2) 750,000

After Subordination Adjustment

(3) 750,000

Percentage of Original Claims Received

(4) 100%

TOTAL

Claim (1) $750,000+ 375,000+750,000=$1,875,000

Application of 100% Distribution

(2)$750,000+ 375,000+750,000=$1,875,000

After Subordination Adjustment

(3)$750,000+ 375,000+750,000=$1,875,000

Percentage of Original Claims Received

(4)$750,000+ 375,000+750,000=$1,875,000

3 0

3 years ago

Berta Company recently lost its entire inventory in a fire. The following information is available from its accounting records:

Simora [160]

Answer:

Lost Inventory would be $2.000

Explanation:

Consider the following calculations and variables

Inventory cost at beginning : $1000
Purchase : $13,000
Sales : $20000
cost of Goods Available = $1000 + $13,000 = $14,000
Gross Profit percentage is 40%. So Cost of Goods Sold = 100-40 = 60%
Cost of Goods Sold = $20000 * 60% = $12000
Ending Inventory = Cost of Goods Available - Cost of Goods Sold = $14000 - $12000 = $2000

Lost Inventory would be $2000

8 0

3 years ago

You have $100,000 available to invest. The risk-free rate, as well as your borrowing rate, is 4%. The risky portfolio has an exp

dlinn [17]

Answer:

c. borrow $50,000 at the risk-free rate

Explanation:

Options are: "invest $100,000 in the risk-free asset, borrow $25,000 at the risk-free rate, borrow $50,000 at the risk-free rate, invest $125,000 in the risk-free asset"

Standard Deviation of the portfolio = Weight of Risky assets * Standard Deviation of risky assets

30% = Weight of Risky assets * 20%

Weight of Risky assets = 30% / 20%

Weight of Risky assets = 1.50

Weight of Risk Free Assets = 1 - 1.50

Weight of Risk Free Assets = -0.50

Borrow from risk assets = 0.50 * $100,000

Borrow from risk assets = $50,000

Hence, If we want the standard deviation of our investment to be 30%, we must borrow $50,000

5 0

3 years ago

Firms earning zero economic profit are

worty [1.4K]

Answer:

The answer is letter A. Earning normal profits because their returns on investment are equal to the opportunity costs of the time invested.

Explanation:

Because all resources are being used efficiently and there is no need to use them elsewhere.

3 0

4 years ago

Coakley Beet Processors, Inc., processes sugar beets in batches. A batch of sugar beets costs $56 to buy from farmers and $18 to

Bumek [7]

Answer:

The answer is A. $ 6

Explanation:

If the beet juice is sold as is:

Selling price: $52

Costs: $56 + $18 = $74

Loss: $(22)

If beet juice is processed into sugar and sold:

Selling price: $78

Costs: $56+ $18+ 32= $106

Loss:($28)

Therefore there is an additional $6 loss.

7 0

3 years ago