Mount Inc Was a Hardware Store That Operated in Boise, Idaho

question 31

Essay

Mount Inc. was a hardware store that operated in Boise, Idaho. Management made some poor inventory acquisitions that loaded the store with unsalable merchandise. Due to the decline in revenues, the company became insolvent. Following is a trial balance as of March 15, 2011, the day the company filed for Chapter 7 liquidation. Company officials believed that sixty percent of the accounts receivable could be collected if the company was liquidated. The building and land had a fair value of $97,500, while the equipment was worth $24,700. The investments represented shares of a publicly traded company that could be sold at the time for $27,300. The entire inventory could be sold for only $42,900. Administrative expenses necessary to carry out a liquidation would have approximated $20,800.
Required:
Prepare a statement of financial affairs for Mount Inc. as of March 15, 2011.

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Definitions:

Supportive

Providing assistance, encouragement, or comfort to others, often in times of need or to help achieve a goal.

Achievement-Oriented

A personal characteristic or attitude where an individual is driven by goals and the pursuit of success.

Job-Centered

An approach to management that focuses on tasks, work procedures, and output, rather than on employee needs and preferences.

Employee-Centered

Describes a management approach focusing on employees' needs, growth, and well-being to improve motivation and productivity.