Aqua Corporation Filed a Petition Under Chapter 7 of the Bankruptcy

question 8

Essay

Aqua Corporation filed a petition under Chapter 7 of the bankruptcy act in January,2014.On February 28,the following information was presented regarding Aqua's financial status.
The Note Payable is secured by Accounts Receivable,and the Mortgage Payable is secured by the Fixed Assets.
Required:
Calculate the amount expected to be available for unsecured claims and the percentage recovery that the unsecured class should expect to receive.

---

Definitions:

Dividends

Payments made by a corporation to its shareholder members, typically distributed from profits.

Capital Expenditure

Funds used by a company to acquire, upgrade, and maintain physical assets such as property, plants, or equipment.

Dividend Increase

An increase in the amount of payment made by a corporation to its shareholders, usually realized when the company has achieved additional profits.

Additional Financing

Funds that are raised by a company through borrowing or issuing new equity, in addition to its existing capital.