Cor

por
ateLi
qui
dat
ion&Reor
gani
zat
ion
NAME:
Duar
te,
Angel
i
caM. Dat
e:08/
02/
19

Pr
ofessor
:Ms.Genev
eveE.Si
nad Sect
ion:
ACTP03 Scor
e:

QUI
Z #5:

1.Theestimatedr ecoveryofunsecur edcredit

orswithoutpri
orit
yisequal
a.t othereali
zabl evalueoft heasset
spl edgedplustheexcessamountmult
ipl
iedbyt
he
est
imatedr ecoveryper centage.
b.t ot
her eali
zablev alueoft heassetspledgedmi nustheexcessamountmul
ti
pli
edbyt
he
est
imatedr ecoveryper centage.
c. tot
heirclai
msmul t
ipl
iedbyt heesti
mat edrecoverypercentage.
d.anyoft hese

2.Theestimat edr ecoveryofparti

all
ysecur
edcredi
torsisequalto
a.t herealizablev alueoft heassetspledgedplust heexcessamountmult
ipl
iedbyt
he
esti
mat edr ecoverypercentage.
b.t herealizablev al
ueoft heassetspledgedmi nust heexcessamountmul
ti
pli
edbyt
he
esti
mat edr ecoverypercentage.
c. thei
rclaimsmul ti
pliedbytheesti
matedrecov
er ypercent
age.
d.anyoft hese

3.Ifthetot
aldebit
sinthest
atementofr eal
i
zat
ionandl
i
qui
dat
ionexceedst
het
otalcr
edi
ts,
therei
s
a.netgai
nfortheper
iod c.ei
theraorb

b.netl
ossf
ort
heper
iod d.noneoft
hese

4.“Assetstober eal
i
zed”ispl
acedonwhi chsi
deofast
atementofr
eal
i
zat
ionandl
i
qui
dat
ion?
a.debi tside,measur
edatreal
izablevalue
b.cr editside,
measuredatbookv alue
c. debitside,measur
edatbookv alue
d.nosi de

5.“Assetsrealized”i
splacedonwhi chsi deofastat
ementofreal
i
zat
ionandl
i
qui
dat
ion?
a.cr editside,measuredatreal
izabl eval
ue
b.cr editside,measuredatactual netproceedsf
rom sal
e
c. debitside, measur
edatbookv alue
d.nosi de
6.“Li
abil
it
ies notl i
qui
dated”i
s placed on whi
ch si
de ofa st
atementofr
eal
i
zat
ion and
l
iqui
dation?
a.debi tside,measur
edatreal
izablevalue
b.cr editside,
measuredatbookv alue
c. debitside,measur
edatbookv alue
d.nosi de

7.“Li
abil
it
iesliqui
dated”i
splacedonwhi chsideofast
atementofr
eal
i
zat
ionandl
i
qui
dat
ion?
a.cr editside,
measur edatreal
izabl evalue
b.cr editside,
measur edatactual settl
ementamount
c. debitside,measuredatbookv al ue
d.debi tside,measuredatactual settl
ementamount

Thenextt
hreequest
ionsar
ebasedont
hef
oll
owi
ngi
nfor
mat
ion:

Qui
tt
erCo.i
sunder
goi
ngl
i
qui
dat
ion.Rel
evanti
nfor
mat
ionf
oll
ows:

Car
ryi
ng
  amount Real
i
zabl
eval
ue

Asset
spl
edgedwi
thpar
ti
all
ysecur
edcr
edi
tor
s 80,
000 50,
000

Fr
eeasset
s 220,
000 160,
000

Expect
edsett
lement
  amount Amountunsecur
ed

Li
abi
l
iti
eswi
thpr
ior
it
y 16,
000 -

Par
ti
all
ysecur
edcr
edi
tor
s 75,
000 25,
000

Unsecur
edcr
edi
tor
s 155,
000 155,
000

8.Whati
sthet
otal
amountav
ail
abl
eforpaymentofcl
aimsofunsecur
edcr
edi
tor
s?
a.210,
000 c.144,
000
b.160,
000 d.0

9.Whatist
heest
imat
edamountofli
qui
dat
ingdi
vi
dendperpesocl
aim?
a.1.17 c.0.
88
 b.1.
03 d.0.
80

10.Whatistheamountofdef
ici
encyt
ocr
edi
tor
s?
a.36,000
b.144,000
c. 160,
000
d.180,000
Usethefol
lowi
nginformationforthenextelevenquesti
ons:
Factpat
ter
n
Andri
xAsteri
xCo.hasf i
l
edf orvoluntar
yi nsol
vencyandisabouttol
i
quidat
eitsbusiness.Andr
ix
Aster
ixCo.
’sstat
ementoff i
nancialposit
ionimmedi at
elypr
iort
othel
iqui
dat
ionprocessisshown
bel
ow:
Andri
xAst er
ixCo.
Statementoff i
nancialposi
tion
AsofDecember31, 20x0

ASSETS
Currentassets:
Cash 160,
000
Account srecei
vabl
e 880,
000
Not erecei
vable 400,
000
I
nv entory 2,
120,
000
Prepaidassets 40,
000
3,
600,
000
Noncurrentasset
s:
Land 2,
000,
000
Buil
ding,net 8,
000,
000
Equipment,net 1,
200,
000
11,
200,
000
Tot
alasset
s 14,
800,
000

LI
ABI LI
TIESANDEQUITY
Curr
entliabi
l
iti
es:
Accruedexpenses 884,
000
Curr
enttaxpay abl
e 1,
400,
000
Accountspayable 4,
000,
000
6,
284,
000
Noncurr
entl
iabi
li
ti
es:
Notepayabl
e(securedbyequipment
) 1,
200,
000
Loanpayabl
e(securedbylandandbuil
ding) 8,
000,
000
9,
200,
000
Capit
aldef
ici
ency:
Sharecapi
tal 2,000,000
Retai
nedearni
ngs(def
ici
t) (
2,684,000)
(684,000)
Tot
all
i
abi
l
iti
esandequi
ty 14,800,000

Additi
onalinformation:
Thefoll
owi nginfor
mat i
onwasdet erminedbeforethecommencementoft heli
qui dati
onprocess:
a. Only76%oft heaccountsreceivabl
eiscoll
ecti
ble.
b. Thenot erecei
vableisful
lycollecti
ble.Anaccruedinter
estrecei
vabl
eof₱40, 000wasnoty et
recor
ded.
c. Thei nventoryhasanest i
mat edsel l
ingpri
ceof₱1, 680,000andest i
mat edcost stosellof
₱40,000.
d. Thepr epaidassetsarenon-ref
undable.
e. Thel andandbui l
dinghavef airval
uesof₱8, 000,000and₱3, 200,
000,respectivel
y.However,
 Andr ixAst eri
xCo.expect st o sellbot ht he land and bui ldi
ng f
ora t otalsel
li
ng pr
ice of
₱10, 400,000.Cost st osellt
hel andandbui l
dingar enegl i
gibleastheprospectiv
ebuyeragr
eest o
shoul derallnecessar ycostsoft ransferr
ingtitl
et othepr operty.
f. Theequi pmenti sexpect edtobesol datanetsel l
ingpriceof₱800, 000.
g. Admi ni
strat
iveexpensesex pectedt obei ncurreddur ingt hel i
qui
dati
onpr ocessis₱120,000.
Thisamounti snoty etrefl
ectedont hest atementoff i
nanci alposi
ti
on.
h. Accruedexpensesi ncludeaccr uedsal ar
iesof₱100, 000.
i
. Accr uedi nt
erestont heloanpay abl
eamount i
ngt o₱60, 000wasnotr efl
ectedinthestat
ement
offinanci alposi
tion.
j
. Al loft heotherliabil
iti
esarest atedatt heirexpectedset tl
ementamount s.

11.Howmuchar et
het
otal
assetspl
edgedtof
ull
ysecuredcredi
tor
s?
a.11,
200,
000 b.12,
000,
000 c.10,
400,000 d.0

12.Howmucharet
het
otal
asset
spl
edgedtopart
ial
l
ysecur
edcredi
tor
s?
a.800,
000 b.3,
140,
000 c.1,200,
000 d.400,000

13.Howmuchar et
het
otal
freeasset
s?
a.2,
788,
800 b.5,
248,800 c.4,
048,
800 d.2,
908,
800

14.Howmuchar et
het
otal
netfreeassets?
a.3,
682,
800 b.4,
048,800 c.2,
908,
800 d.3,
628,
800

15.Howmucharet
het
otal
unsecuredli
abi
l
iti
eswithpr
ior
it
y?
a.1,
620,
000 b.220,
000 c.1,
520,
000 d.100,
000

16.Howmuchar et
het
otal
ful
l
ysecur
edcr
edi
tor
s?
a.8,
000,
000 b.8,
060,
000 c.8,800,
000 d.9,
620,
000

17.Howmucharet
het
otal
par
ti
all
ysecuredcr
edi
tors?
a.1,
200,
000 b.1,
260,000 c.2,820,
000 d.3,
920,
000

18.Howmuchar et
het
otal
unsecuredl
i
abi
li
ti
eswi
thoutpri
ori
ty?
a.4,
784,
000 b.4,
884,
000 c.4,
904,000 d.5, 184,
000

19.Howmuchistheesti
mateddef
ici
encytounsecur
edcr
edi
tor
swit
houtpr
ior
it
y?
a.1,
655,
200 b.1,
555,
200 c.1,380,
200 d.1,456,
200

20.Whatist
heest
imat
edrecov
eryper
cent
ageofunsecuredcr
edi
tor
swi
thoutpr
ior
it
y?
a.75.
85% b.31.
71% c.70% d.24.
15%

21.Howmuchcant
hesharehol
der
sex
pectt
orecov
erf
rom t
hei
requi
tyi
nter
est
s?
a.483,
000 b.(478,
800) c.(
165,
186) d.0