Your Company Is in Financial Trouble and Is in the Process of Reorganizing

In: Business and Management

Submitted By smsm5002
Words 592
Pages 3
Your company is in financial trouble and is in the process of reorganizing. Your manager wants to know how you will report on restructuring the debt. Use the following information to help with this assignment.

• Part A

ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 108,340
Trade accounts receivable, net of allowances 2,866,260
Other receivables 62,150
Operating supplies, at lower of average cost or market 58,630
Prepaid expenses 446,050

Total Current Assets 3,541,430

PROPERTY, PLANT, AND EQUIPMENT (at cost)
Land 1,950,000
Buildings and improvements 2,327,410
Equipment 5,015,660
Other equipment and leasehold improvements 1,645,580 total 10,938,650
Accumulated depreciation and amortization (7,644,430)
Net Property, Plant, and Equipment 3,294,220
OTHER ASSETS
Deposits and other assets 1,000,080

TOTAL ASSETS $ 7,835,730

LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT)

CURRENT LIABILITIES
Accounts payable $ 972,160
Accrued liabilities 2,071,270
Accrued claims costs 793,620
Federal and other income taxes 19,710
Deferred income taxes 500
Current maturities of long-term debt and capital lease obligations 50,610
Short-term borrowings 249,250
Total Current Liabilities 4,157,120

LONG-TERM LIABILITIES
Capital lease obligation 54,580
Note outstanding 3,000,000
Mortgage outstanding 608,030
Other liabilities 95,860
Total long-term liabilities 3,758,470

Total Liabilities 7,915,590

SHAREHOLDERS’ EQUITY (DEFICIT)
Common stock, $.01 par value; authorized
500,000 shares; issued 231,000 shares 2,310
Additional paid-in capital 731,090
Accumulated other comprehensive loss (113,500)
Retained earnings (deficit) (639,180)
Treasury stock (60,580)
Total Shareholders’ Equity (Deficit) (79,860)

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 7,835,730

• Part B

As stipulated, your company is having financial…...

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