Buggy Whip Industries Is Being Liquidated Under Chapter 7 of the Bankruptcy

question 20

Multiple Choice

Buggy Whip Industries is being liquidated under Chapter 7 of the bankruptcy code. When it filed for bankruptcy, its balance sheet was as follows: ? $\begin{array}{lclr}\text { Current assets } & \$ 22,000,000 & \text { Accounts payable } & \$ 18,000,000 \\\text { Fixed assets } & & \text { Acctued taxes } & 3,000,000 \\\text { Land and buildings } & 9,000,000 & \text { Notes payable (bank) * } & 3,000,000\\\text { Equipment } & 11,500,000 & \text { Total current liabilities } & \$ 24,000,000 \\\text { Total assets }& \$ 42,500,000 & \text { Mortgage bonds* } & 8,000,000 \\& & \text { Debentures } & 4,000,000 \\& & \text { Stockholders' equity } & 6,500,000\\&&\text { Total liabilities }\\&&\text { and equity }&\$42,500,000\end{array}$ *Bank loan is unsecured
**Mortgage bonds are secured by land and buildings
Assume that the liquidation is a voluntary petition, that no unpaid contributions to employee benefit plans exist, and that no customer layaway deposits are involved. The proceeds from the liquidation of the company's assets are as follows: $\begin{array}{lr}\text { Current assets } & \$ 12,000,000 \\\text { Land and buildings } & 5,000,000 \\\text { Equipment } & 7,500,000\\\text { Total }&\$24,500,000\end{array}$ ?
Bankruptcy administration charges are $2,500,000. Determine the amount that the mortgage bondholders will receive in this liquidation.

• A) $5,000,000
• B) $6,500,000
• C) $8,000,000
• D) $10,500,000

Identify factors contributing to stress and stress-related symptoms in patients.

Understand and apply initial nursing interventions for stress relief.

Recognize and prioritize nursing interventions for patients with significant life changes.

Understand the physiological impacts of stress and illness on blood sugar levels.

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Definitions:

Revised Article 3

refers to updates or modifications made to Article 3 of a specific statute or code, which often deals with negotiable instruments like checks and promissory notes.

Indorsement

The act of signing the back of a negotiable instrument, such as a check, thus transferring the rights to another party.

Indorsee

A person or entity to whom the rights under a negotiable instrument, such as a check or promissory note, have been legally transferred.

Enforce

To compel observance of or compliance with a law, rule, or obligation.