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3 The following balance sheet has been prepared by the accountant for Limestone Company as of June 3, 2020, the date on which the company
3 The following balance sheet has been prepared by the accountant for Limestone Company as of June 3, 2020, the date on which the company is to file a voluntary petition of bankruptcy: 6.68 points eBook LIMESTONE COMPANY Balance Sheet June 3, 2020 Assets Cash Accounts receivable (net) Inventory Land Buildings (net) Equipment (net) Total assets Liabilities and Equities Accounts payable Notes payable-current secured by equipment) Notes payable-long-term (secured by land and buildings) Common stock Retained earnings Total liabilities and equities $ 11,000 84,000 126,000 119,000 319,000 218,000 $ 877,000 Print $ 136,000 288,000 209,000 139,000 105,000 $ 877,000 Additional Information . If the company is liquidated, administrative expenses are estimated at $37,000. The accounts payable figure includes $29,000 in wages earned by the company's 12 employees during May. No one earned more than $4,100 Liabilities do not include taxes of $33,000 owed to the U.S. government. Company officials estimate that 36 percent of the accounts receivable will be collected in a liquidation and that the inventory disposal will bring $99,000. The land and buildings will be sold together for approximately $348,000; the equipment should bring $149,000 at auction. Prepare a statement of financial affairs for Limestone Company as of June 3, 2020. LIMESTONE COMPANY Statement of Financial Affairs June 3, 2020 Book Values Assets Available for Unsecured Creditors Pledged with Fully Secured Creditors: Pledged with Partially Secured Creditors: Free Assets: Total amount available to pay liabilities with priority and unsecured creditors Available for unsecured creditors Estimated deficiency Book Values Liabilities and Stockholders' Equity Unsecured Nonpriority Liabilities Liabilities with Priority: Total Fully Secured Creditors: Fully Secured Creditors: Partially Secured Creditors: Unsecured Creditors: Stockholders' equity
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