Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Jenny is the director of a company, Shipley Ltd, which is involved in building and construction. There are four other directors of this company. The company has been lending large sums of money to its parent company in China via an offshore subsidiary for more than two years. The directors have relied on letters of comfort from the parent company that the money will be repaid in due process. Of late, the building and construction industry is facing difficult times due to rising costs of materials that have to be imported from overseas. Shipley Ltd's financial situation has become more serious and many creditors and subcontractors have not been paid. The parent company is continuing to make assurances that it will repay the loans but the money has yet to appear in Shipley Ltd's bank account. Jenny is very concerned as she believes that Shipley Ltd is no longer solvent and the company's performance is very poor. The other directors brush Jenny's concerns aside, saying that it is the norm for construction companies to trade insolvently.
Jenny comes to you for legal advice in regards to her legal position as a director in such circumstances. She wants to know:
Problem 1. Is there an obligation to cease trading when a company is insolvent? If there is not, what are the circumstances under which a company can continue to trade?
Problem 2. If a director allows a company to continue to trade indefinitely and the company is placed into liquidation, what are the potential liabilities for a director and how are these determined by the Courts?
What the amount of administrative cost chargeable to consulting services would? Carlin and Marley, an accounting firm, provides consulting
If fixed costs increase 10% next year, and the new selling price per unit goes into effect, how many units will need to be sold to breakeven?
If the nominal interest rate is 12% and the real interest rate is 7%, what is the approximate value of the expected inflation rate?
Calculate Sheryl Chang's insurable earnings for Block 15B of the Record of Employment. Sheryl Chang has been with the organization since July 25, 2000
calculate- Average operating assets -Margin- Turnover- Return on investment- Average operating assets- Residual income.
Problem: Use the five transactions below for Hennigan Rentals to answer the questions that follow.
Determine the dollar amounts that Towson will report on its year end Balance Sheet for Paid in Capital Common Stock in Excess to par.
Apr. 18 Purchased merchandise from FAU Corp. under the following terms: $8,500 price, invoice dated April 18, credit terms of 2/10, n/30, and FOB destination. Apr. 21 After negotiations, received from FAU a $1,100 allowance on the April 18 purcha..
What is the approximate probability that the return on the Toronto Stock Exchange will be less than minus 30% (-30%) in a given year?
A corporation had 50,000 shares of $20 par value common stock outstanding on July 1. Later that day the board of directors declared a 10% stock dividend when the market value of each share was $27. The entry to record this dividend is:
Distinguish between capital and revenue expenditure.- The following costs were also incurred by Drake Ltd during the financial year ended 30 June.
In terms of the asset recognition criteria we discussed in class, why does US GAAP generally not permit development costs to be treated as assets?
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd