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kiruha [24]
3 years ago
10

On February 28, 1991, Master Inc. had total assets with a fair market value of $1,200,000 and total liabilities of $900,000. On

January 15, 1991 Master made a monthly installment note payment to Acme Distributors, a creditor holding a properly perfected security interest in equipment having a fair market value greater than the balance due on the note. On March 15,19991, Master voluntarily filed a petition in bankruptcy under the liquidation provisions of Chapter 7 of the federal Bankruptcy Code. One year later, the equipment was sold for less than the balance due on the note to Acme.
If a creditor challenged Master's right to file, the petition would be dismissed:

a. If Master had less than 12 creditors at the time of filing.
b. Unless Master can show that a reorganization under Chapter 11 of the federal Bankruptcy Code would have been unsuccessful.
c. Unless Master can show that it is unable to pay its debts in the ordinary course of business or as they come due.
d. If Master is an insurance company.
Business
1 answer:
Katen [24]3 years ago
8 0

Answer:

d. If Master is an insurance company

Explanation:

According to the given question, on January 15, 1991, Master made a monthly installment note payment to Acme Distributors, a creditor. Master Inc. had total assets with a fair market value of $1,200,000 and total liabilities of $900,000 on February 28, 1991. However, Master voluntarily filed a petition in bankruptcy on March 15, 1991. If the equipment was sold for less than the balance due on the note to Acme and a creditor challenged Master's right to file, the petition would be dismissed if Master is an insurance company.

Insurance is an entity that protects from financial loss. It is a form of risk management.

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If we assume that there is no fixed manufacturing overhead and the variable manufacturing overhead is $10 per direct labor-hour,
Oksana_A [137]

Answer:

6,000

Explanation:

This question is incomplete. I have given the complete question in addition to my solution below.

If we assume that there is no fixed manufacturing overhead and the variable manufacturing overhead is $10 per direct labor-hour, what is the estimated finished goods inventory balance at the end of July?

Morganton Company makes one product and it provided the following information to help prepare the master budget:  

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Forty percent of credit sales are collected in the month of the sale and 60% in the following month.

The ending finished goods inventory equals 20% of the following month’s unit sales.

The ending raw materials inventory equals 10% of the following month’s raw materials production needs. Each unit of finished goods requires 4 pounds of raw materials. The raw materials cost $2.50 per pound.

Thirty percent of raw materials purchases are paid for in the month of purchase and 70% in the following month.

The direct labor wage rate is $15 per hour. Each unit of finished goods requires two direct labor-hours.

The variable selling and administrative expense per unit sold is $1.70. The fixed selling and administrative expense per month is $67,000.

Variable manufacturing overhead = $10 per direct labor hour

Amount of time required to finish one unit of goods = 2 hours

Direct labor wage rate = $15 per hour

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4 0
3 years ago
a manufacturing plant averaged $740 of raw materials .$320 of work in process inventory and $1010 of finished goods inventory du
Vika [28.1K]

Answer:

4.83 times

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Now put these values to the above formula  

So, the answer would be equal to  

= $10,000 ÷ $2,070

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