Ch 22 Toolkits - A 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16...

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Chapter 22. Tool Kit for Bankruptcy, Reorganization, and L Table 22-2 Columbia Software Company: Balance Sheets as of March 3 Assets Current assets $3,500,000 Net fixed assets $12,500,000 Other assets $700,000 Total assets $16,700,000 Liabilities and Equity Accounts payable $1,000,000 Accrued taxes $250,000 Notes payable $250,000 Other current liabilities $1,750,000 7.5% first mortgage bonds, due 2015 $6,000,000 9% subordinated debentures, due 2010 $7,000,000 Total liabilities $16,250,000 Common stock ($1 par) $1,000,000 Paid-in-capital $3,450,000 Retained earnings ($4,000,000) Total liabilities and equity $16,700,000 Reorganization Plan Table 22-3 Columbia Software Company: Reorganization Plan Senior Claims Taxes $250,000 Paid off by Moreland Mortgage bonds $6,000,000 Assumed by Moreland REORGANIZATION IN BANKRUPTCY (Section 25.5) Columbia Software Company is a regional firm that specializes in selling, installing, and s accounting software. The table below gives Columbia's balance sheet. The company had losses running to $2.5 million a year, and the asset values in the balance sheet are overst their market values. The firm was insolvent, which means that the book values of its liabil
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Ch 22 Toolkits - A 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16...

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