A receiver was appointed by the court to manage the affairs of Davis Manufacturing Company on March 31, 2020. On this date, the following balance sheet applied:

Additional Information:
1. The cash account includes a $500 travel advance that has been spent.
2. Of the total accounts receivable, $75,000 is believed to be collectible. The remaining accounts are doubtful, but it is believed that about one- third of these will be realized eventually. The accounts receivable are pledged as security on a $10,000 note payable.
3. Notes receivable of $50,000 have been pledged as security on a note payable of $45,000. This portion of the notes receivable has an estimated realizable value of $35,000. The remaining notes receivable, including the accrued interest, are expected to be fully collected. The $45,000 note payable has accrued interest due of $1,000.

4. The finished- goods inventory is expected to sell at 20% above its cost, with expenses involved in its disposition approximating 10% of selling price. The work in process inventory can be completed at an additional cost of $55,000, of which $40,000 represents materials used
from the present raw materials inventory. The completed work in process should then sell for $145,000; the remaining raw materials should sell for one- half their cost. Supplies are expected to realize $1,300.
5. The investment in stock consists of 2,000 shares of Monelli Vineyards. The stock has a current market value of $50 per share and is pledged as security on a note payable of $41,000. Interest accrued on the note payable amounts to $1,750.
6. The land and buildings have been appraised at $165,000 and $260,000, respectively. They are pledged as collateral on the mortgage note payable.
7. The equipment is expected to realize $100,000.
8. Prepaid expenses are nonrealizable.

Required:
A. Prepare a statement of affairs.
B. Prepare a deficiency account detailing estimated gains and losses.
C. Calculate the dividend rate per dollar of unsecured liabilities.

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Cash Accounts Receivable Notes Receivable Accrued Interest on Notes Receivable Inventories Finished Goods Work in Process Raw Materials Supplies Prepaid Expenses Investment in Stock Davis Manufacturing Company Balance Sheet March 31, 2020 Land Buildings (net) Equipment (net) Total $ 22,500 115,500 60,000 1,375 140,000 97,500 60,000 7,750 3,000 66,250 105,000 495,000 232,500 $1,406,375