Titanic Corporation Has Reached Agreement with Its Creditors to Liquidate

question 14

Essay

Titanic Corporation has reached agreement with its creditors to liquidate voluntarily its assets and to use the proceeds to pay off as much of its liabilities as possible. The firm anticipates that it will be able to sell off its assets in an orderly fashion, realizing as much as 70% of the book value of its receivables, 40% of its inventory, and 25% of its net fixed assets (excluding land). However, the firm believes that the land on which it is located can be sold for 120% of book value. The firm has legal and professional expenses associated with the liquidation process of $2,900,000. The firm has only common stock outstanding. Estimate the amount of cash that would remain for the firm's common shareholders once all assets have been liquidated.
$\begin{array} { | l | l | l | } \hline \text { Balance Sheet Item } & \text { Bank Value of Atsets } & \text { Liquidetion Value } \\\hline \text { Cash } & \$ 10 & \\\hline \text { Accaunts Receivable } & \$ 20 & \\\hline \text { Invertary } & \$ 15 & \\\hline \begin{array} { l } \text { Net Fixed Assets } \\\text { Excluding Land }\end{array} & { \$ 8 } & \\\hline \text { Land } & \$ 6 & \\\hline \text { Total Assets } & { \$ 5 9 } & \\\hline \text { Tatal Linbilities } & \$ 35 & \\\hline \text { Shareholders Equity } & \$ 24 & \\\hline\end{array}$

Learn the significance of the social exchange theory in the dynamics of close relationships.

Understand the role of attribution and behavior confirmation in perpetuating stereotypes and prejudices.

Understand the concept of altruism and the psychological theories that explain prosocial behavior.

Recognize and describe the impact of prejudice, discrimination, and stereotyping on individuals and society.

---

Definitions:

Soil Type

A classification based on the physical characteristics of the soil, including texture, fertility, and composition.

Loam

Loam is a fertile soil type that is a balanced mixture of sand, silt, and clay, known for its excellent moisture retention and aeration qualities, suited for agricultural use.

Hydrologic Cycle

The continuous movement of water on, above, and below the surface of the Earth, including processes such as evaporation, condensation, precipitation, and runoff.

Movement

The act or process of moving or being moved from one place, position, or state to another.