Xavier Company is going through a Chapter 7 bankruptcy. All assets have been liq

Question

Xavier Company is going through a Chapter 7 bankruptcy. All assets have been liquidated, and the company retains only $25,300 in free cash. The following debts, totaling $38,550, remain:

Government claims to unpaid taxes $ 6,100 Salary during last month owed to Mr. Key (not an officer) 17,925

Administrative expenses 2,550

Salary during last month owed to Ms. Rankin (not an officer) 5,325

Unsecured accounts payable 6,650

Indicate how much money will be paid to the creditor associated with each debt.

type of debts Amounts

Explanation / Answer

Amount availble =$25300

Less:

Governmetn dues=$6100

Administrative =$2500

Available to creditors=$16650

Type of debt Amount due amount credited salart to Key 17925 9982 Salary to Ms rankin 5325 2965 Unsecured loans 6650 3703 29900 16650

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