Mandich Co

question 44

Multiple Choice

Mandich Co. had the following amounts for its assets, liabilities, and stockholders' equity accounts just before filing a bankruptcy petition and requesting liquidation: Of the salaries payable, $30,000 was owed to an officer of the company. The remaining amount was owed to salaried employees who had not been paid within the previous 80 days: John Webb was owed $10,600, Samantha Jones was owed $15,000, Sandra Johnson was owed $11,900, and Dennis Roberts was owed $2,500. The maximum owed for any one employee's claims for contributions to benefit plans was $800. Estimated expense for administering the liquidation amounted to $40,000.
-On a statement of financial affairs, what amount would have been shown as assets available to pay liabilities with priority and unsecured creditors?

• A) $390,000.
• B) $445,000.
• C) $495,000.
• D) $660,000.
• E) $795,000. Net realizable value of: Cash + A/R + Inventory net of note payable + Land + Building

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Definitions:

Shingles

A viral infection caused by the varicella-zoster virus, leading to a painful rash, usually on one side of the body or face.

Cornea

A transparent area on the front of the outer layer of the eye that acts as a window to let light into the eye.

Pupil

The opening at the center of the iris, which grows smaller or larger as the iris contracts or relaxes, respectively; it regulates the amount of light that enters the eye.