1)

Kimber Co. is in the process of liquidating and going out of business. The firms accountant has provided the following balance sheet and additional information:

Assets
Cash	$	30,000
Accounts receivable		90,000
Merchandise inventory		150,000
Total current assets				$	270,000
Land	$	50,000
Buildings & equipment		400,000
Less: Accumulated depreciation		(120,000	)
Total land, buildings, & equipment					330,000
Total assets				$	600,000
Liabilities and Stockholders Equity
Accounts payable	$	80,000
Notes payable		110,000
Total current liabilities				$	190,000
Long-term debt					130,000
Total liabilities				$	320,000
Stockholders Equity
Common stock, no par	$	100,000
Retained earnings		180,000
Total stockholders equity					280,000
Total liabilities and stockholders equity				$	600,000

It is estimated that all but 20 percent of the accounts receivable can be collected, and that the merchandise inventory can be disposed of in a liquidation sale for 70 percent of its cost. Buildings and equipment can be sold at $60,000 above book value (the difference between original cost and accumulated depreciation shown on the balance sheet), and the land can be sold at its current appraisal value of $85,000. In addition to the liabilities included in the balance sheet, $5,000 is owed to employees for their work since the last pay period, and interest of $10,000 has accrued on notes payable and long-term debt.

Required:

a. Calculate the amount of cash that will be available to the stockholders if the accounts receivable are collected, the other assets are sold as described, and all liabilities and other claims are paid in full.