Mandich Co

question 17

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.
-What amount would the company have expected to pay for every dollar of unsecured liability without priority?

• A) $.30.
• B) $.40.
• C) $.50.
• D) $.60.
• E) $.75. Assets available for priority claims and unsecured creditors $495,000 - Priority claims $165,000 = Assets available for nonpriority unsecured creditors $330,000. $330,000/$660,000 unsecured liab. = $.50.

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Definitions:

Differentiation

The process of distinguishing a product or service from others to make it more attractive to a particular target market.

Cost

The amount of money required to purchase something or the expense associated with producing a service or carrying out a project.

Business Strategies

Comprehensive plans crafted by organizations to achieve competitive advantage, meet customer needs, and ensure long-term profitability and growth.

Horizontal Fit

involves the alignment of HR practices with each other to ensure they are coherent and mutually supportive in achieving organizational goals.