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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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A company had the following purchases and sales during its first year of operations:Purchases SalesJanuary: 10 units at $120 6 u
Setler [38]

Answer:

Explanation:

FIFO inventory costing method uses the assumption that the first set of inventory is the first to be sold.

                       Purchase

 Month            Unit         rate          Cost

January            10            120           1200

February           20          125           2500

May                   15            130           1950

September       12            135            1620

November        10            140            1400

Total                 67

                         Sales  (FIFO)

January             6            120              720

February           4            120               480

                         1              125               125

May                   9             125               1125

September       8              125              1000

November        2              125               250

                         11               130              1430

                                Closing Inventory

May                 4                  130             520

September     12                 135             1620

November      10                 140             1400

                                                              3540

                         

7 0
3 years ago
West Street Automotive is considering adding state safety inspections to its service offerings. The equipment necessary to perfo
Over [174]

Answer:

19.7%

Explanation:

The modified internal rate of return is a capital budgeting method used to determine the profitability of an investment. The MIRR assumes that cash inflows are reinvested at the firm's cost of capital and outflows are financed at the firm's financing cost.

MIRR = (Future value of a firm's cash inflow / present value of the firm's cash outflow)^ (1/n)  - 1

Future value = payment x[ (1 + interest rate)^n - 1 ] / interest rate

$193,000 x (1.17^5) - 1 / 0.17 = 1353779.24

1353779.24 / $551,000) ^0.2 - 1 = 19.7%

6 0
3 years ago
As of late, US antitrust regulators begin their examination of a merger by using statistical tools and real-world evidence to __
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US antitrust regulators begin their examination of a merger by using statistical tools and evidence to estimate demand and supply curves.

<h3>What is a merger?</h3>

A merger refers to the agreement that unites two existing companies into one new company.

As of late, US antitrust regulators begin their examination of a merger by using statistical tools and real-world evidence to estimate demand and supply curves faced by the firms that are proposing a merger.

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4 0
1 year ago
Why not use the silver standard for money?
xz_007 [3.2K]
Do u mean the nickles and dimes??
8 0
2 years ago
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Eddi Din [679]

Answer:

A long-term liability should be reported as a current liability in a classified balance sheet if the long-term debt: Is callable by the creditor - Will be refinanced with stock.

Option A is the correct answer.

Explanation:  

Generally, a short term liability is required to be paid by the company within a period of 1 year. Nevertheless, if the liability is callable the creditor, the company is not required to pay the liability within a year.

Thus, in this instance, a current liability can be detailed as a long term debt in the balance sheet.

6 0
3 years ago
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