12

Statement of Affairs

Dellwood Corporation is experiencing difficulty in paying its bills and is considering filing for bankruptcy. Current data as of September 30, 2020, show the following:

Assets		Expected Realizable Value
Cash		$ 20,000
Accounts receivable		300,000
Inventory-materials		90,000
Inventory-finished goods		400,000
Land		150,000
Building		1,000,000
Trucks		70,000
Equipment		200,000
Liabilities	Book Value	Secured by
Accounts payable	$ 740,000
Bank loan	275,000	80% of receivables
Wages payable	160,000
Taxes payable	50,000
Truck loan	85,000	Trucks with $30,000 estimated realizable value
Mortgage payable	600,000	Land and building
Loan payable	480,000	Finished goods
Note payable	800,000

All of the wages payable have priority.

Required

Prepare a statement of affairs.

Note: Do not use a negative sign with your answers.

Dellwood Corporation Statement of Affairs September 30, 2020
	Estimated Realizable Value	Free Assets
Assets pledged to fully-secured creditors:
Land and building	$Answer
Less: Liabilities to fully-secured creditors	Answer	$Answer
Assets pledged to partially-secured creditors:
Accounts recievable	Answer
Inventory - finished goods	Answer
Truck	Answer
	Answer
Free assets:
Cash	Answer
Accounts receivable	Answer
Inventory materials	Answer
Trucks	Answer
Equipment	Answer	Answer
Total free assets		Answer
Less: Unsecured liabilities with priority		Answer
Net free assets		Answer
Estimated deficiency to unsecured creditors		Answer
Total unsecured liabilities		$Answer

	Creditors' Claims	Unsecured Liabilities
Fully-secured creditors:
Mortgage payable	$Answer
Partially-secured creditors:
Bank Loan	Answer
Loan payable	Answer
Truck Loan	Answer
	Answer
Less: Value of pledged assets	Answer	$Answer
Unsecured creditors with priority:
Wages payable	Answer
Taxes payable	Answer
	Answer
Unsecured creditors:
Account payable	Answer
Note payable	Answer	Answer
Total unsecured liabilities		$Answer