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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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Willow Creek Nursery, with an authorization of 72,000 shares of preferred stock and 210,000 shares of common stock, completed se
GaryK [48]

Answer:

Explanation:

The journal entries are shown below:

1. Cash A/c Dr $4,000,500

         To Common stock $2,540,000

         To Paid-In Capital in Excess of Par-Common Stock  $1,460,500

(Being issuance of the common stock is recorded)

2. Land A/c Dr $860,000

   Building A/c Dr $2,533,000

        To Preferred Stock  $2,925,000

        To Paid-In Capital in Excess of Par-Preferred Stock  $468,000

(Being issuance of the preferred stock is recorded)

All other information which is given is not relevant. Hence, ignored it

8 0
3 years ago
Explain how to structure discounts so that they encourage customers to spend money and keep the business profitable. Be sure to
umka21 [38]

If you offer volume discounts, it will encourage customers to buy more than that would have otherwise. For example, if each pair of socks is $5 but you offer a volume discount where customers can get 10 pairs for $30 you are encouraging them to spend more than they normally would.

7 0
3 years ago
Quantitative Problem 1: Assume today is December 31, 2017. Barrington Industries expects that its 2018 after-tax operating incom
ziro4ka [17]

Answer:

$29.630

Explanation:

For computation of stock price first we need to follow some steps which is shown below:-

Free cash flow = EBIT (1 - T) + Depreciation - Capital expenditure - Working capital

= $450 million + $65 million - $110 million - $30 million

=  $375 million

Value of firm = Free cash flow ÷ (WACC - Growth)

= $375 million ÷ (9% - 4.5%)

= $375 million ÷ 0.045

= $8,333.33 million

Value of equity = Value of firm - Value of debt

= $8,333.33 million - $3,000 million

= $5,333.33 million

Stock price = Value of equity ÷ Outstanding shares

= $5,333.33 million ÷ 180 million

= $29.630

3 0
3 years ago
Explain why a $ 50,000 increase in inventory during the year must be included in developing cash flows from operating activities
Simora [160]

Explain why a $50,000 increase in inventory during the year must be included in computing cash flows from operating activities under both the direct and indirect methods. The $50,000 increase in inventory must be used in the statement of cash flow calculations because it increases the outflow of cash (all else equal).

An increase in the company's inventory indicates that the company has purchased more goods than it has sold. It means an additional cash outflow as cash must be used to purchase additional consumables. Cash outflows have a negative or unfavorable impact on a company's cash position.

Therefore, as inventories increase, the company will have to spend money to buy them (cash outflow). On the other hand, the decrease in inventory will be cash in for the amount sold. We arrive at the following rule: Inventory Increase => Cash Outflow (Negative)

An indirect way to create a cash flow statement is the change in the amount of cash due to operating activities in the account on the balance sheet. and adjust the net profit for the year.

Learn more about inventory here;

brainly.com/question/24868116

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5 0
2 years ago
How long should you wait before republishing a piece of content to a new website? You shouldn’t wait. Republish it immediately.
Oliga [24]

Answer:

The correct answer is Two weeks.

Explanation:

If you publish twice in a week, in the next you publish ten times, once in the third week and again ten times the next, your visits will take it very strangely. One of the ways to maintain a loyal audience is precisely to make her know the frequency of your blog post.

Only by having this regularity, your visitors will know how often they should visit your website.

In this way you eliminate the likelihood of someone visiting your blog and feeling frustrated when they did not find anything new when it was for that reason that they accessed, or finding 15 new posts when he hoped to find only 1.

8 0
3 years ago
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