4/19/2010 Chapter 22. Ch 22-5 Build a Model Balance Sheets (Millions of Dollars) Assets Current assets $700 Net fixed assets 1,300 Total assets $2,000 Liabilities and equity Accounts payable $80 Accrued taxes 80 Accrued wages 70 Notes payable 400 Total current liabilities $630 700 300 Debentures 500 200 Common stock 100 Retained Earnings (430) Total claims $2,000 Other inputs (in thousands of dollars): Proceeds from sale of fixed assets = $900 Proceeds from sale of current assets = $401 Trustee's costs = $1 Total claims (including trustee expenses) Total cash from liquidation Amount available for distribution to shareholders Priority claims: Trustee's expenses Worker's wages due Government taxes due Distribution to first mortgage (paid from sale of fixed assets) Total preliminary distributions to priority claimaints Total of satisfied priority claims Total unsastified claims from all claimants Funds available for distribution to general creditors: Pro rata distribution percentage Distributions due to general claims:
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This note was uploaded on 10/22/2011 for the course ACCOUNTING 1102 taught by Professor Borges during the Spring '11 term at InterAmerican Recinto Metropolitano.