1. Bankruptcy: explain how you move from the details of a situation to the next level. Each of you will address this question differently. Specifically, the issue
relates to the net realizable value for the balance sheet. Then the key calculation: Free Assets / Unsecured Claims = __%
This __% will be applied to determine the amount to be paid for liability values not secured.
2. Research the concept of bankruptcy and reorganization. Find an example such as Pilgrim Pride Corporation. Post concepts that show, from last year to
this year, the details we have discussed thus far. What are they doing now? Visit their SEC 10-K and search for the word bankruptcy and see how this is
referenced in the notes to the financial statements. Other examples: K-Mart (see Sears).
3. If you find the SEC 10-K for a company related to bankruptcy, you might post details from the Notes to the Financial Statement that relate to the
bankruptcy and reorganizations. Copy and paste pertinent details from the Owners’ Equity section of the balance sheet and/or the statement of owners’
equity. What do we learn? What changes are occurring and what are the related dollar values?
4. This discussion is not likely related to your SEC 10-K project company but you may find notations about credit risk for customers as well as for financial…