Additional information: Estimated net realizable value of the notes receivable was P105,000 and was pledged to the mortgage payable. 80% of the book value of the inventories can be sold at P45,000 and was pledged to 60% of the accounts payable. The remaining book value of the inventories have an estimated fair value of P20,000. 80% of the remaining unpaid accounts payable were secured by the equipment having an estimate useful fair value of P60,000. Prepaid expense has no estimated fair value. Liquidation and administration expenses were estimated in the amount of P8,000. Income tax payable had been accrued in the amount of P2,000 (the accountant recorded it using the accrued expense account).Interest on notes receivable and mortgage payable have not been accrued in the amount of P10,000 and P15,000 respectively.1. How much are the net free assets?2. How much is the estimated deficiency?3. How much is the estimated payment to the mortgage payable?4. How much is the percentage recovery of the partially secured accounts payable?

The following balances were ascertained in Flop Divas of the Philippines Inc., which is of course experiencing insolvency: Cash P 8,000 Accounts Payable P 80,000 Notes Receivable 120,000 Accrued Expenses 30,000 Inventories 80,000 Salaries Payable 15,000 Prepaid Expense 10,000 Mortgage Payable 155,000 Equipment, net 150,000 Ordinary Shares 100,000 Deficit (12,000) TOTAL P368,000 TOTAL P368,000