Lynch, Inc., is a hardware store operating in Boulder, Colorado. Management recently made some poor inventory acquisitions that have loaded the store with unsalable merchandise. Because of the drop in revenues, the company is now insolvent. The entire inventory can be sold for only $33,000. Following is a trial balance as of March 14, 2009, the day the company files for a Chapter 7 liquidation:

Debit Credit Accountspayable. $ 33,000 Accounts receivable.$ 25,000 Accumulated depreciation, building. 50,000 Accumulated depreciation, equipment. 16,000 Additional paid-in capital. 8,000 Advertising payable. 4,000 Building. 80,000 LO4 Cash.1,000 Commonstock. 50,000 Equipment. 30,000 Inventory.100,000 Investments.15,000 Land. 10,000 Note Payable—Colorado Savings and Loan (secured by lien on land and building). 70,000 Note Payable—First National Bank (secured by equipment) ... 150,000 Payroll taxes payable. 1,000 Retained earnings (deficit).126,000 Salaries payable (owed equally to two employees). 5,000 Totals.$387,000 $387,000 Company officials believe that 60 percent of the accounts receivable can be collected if the company is liquidated. The building and land have a fair value of $75,000, and the equipment is worth $19,000. The divestments represent shares of a nationally traded company that can be sold at the current time for $21,000. Administrative expenses necessary to carry out a liquidation would approximate $16,000.

Prepare a statement of financial affairs for Lynch, Inc., as of March 14, 2009.