Please help me solve for the government claims and salary below. Xavier Company
ID: 2555293 • Letter: P
Question
Please help me solve for the government claims and salary below.
Xavier Company is going through a Chapter 7 bankruptcy. All assets have been liquidated, and the company retains only $27,300 in free cash. The following debts, totaling $48,550, remain: Government claims to unpaid taxes Salary during last month owed to Mr. Key (not an officer) Administrative expenses Salary during last month owed to Ms. Rankin (not an officer)7,325 Unsecured accounts payable $ 8,100 19,925 4,550 8,650 Indicate how much money will be paid to the creditor associated with each debt. Answer is complete but not entirely correct. Administrative expenses Government claims to unpaid taxes Salary during last month owed to Mr. Key and Ms Rc arni 4,550 $8,100 3 $ 7,325Explanation / Answer
Answer
Money will be paid to the creditors:
Total cash needed $27300 Less: Administrative exp. $4550 Balance $22750 Less: govt. claims $8100 Maximum limit for salary $14650 Less: saaries: For Mr.key(19925-7325) (14650-7325) $7325 For Mr. rankin $7325