Case Read the following case carefully and answer the case questions. Show all your work for possible partial marks. #24 Ben Lemke, sole proprietor of Wheels n' Deals, is having some difficulty with his retail store. He's concerned about the possibility of having to close it. He knows the value of his business as an ongoing entity is not worth much because of the minimum level of profit his store has shown over the past two years. He's now thinking seriously about getting out of the business by liquidating his assets and paying his creditors in full. His bank manager informed him that if he liquidates his assets, he would probably get 60% for his non-current assets, no more than 40% for his inventories, and 65% of the account receivables amount shown on his statement of financial position as at December 31. 4 Accounts Amounts Revenue $3,000,000 Inventories $200,000 Share Capital $150,000 Accumulated Depreciation $200,000 Distribution Costs $130.000 Cash $10,000 Marketable Securities $50,000 Retained Earnings $385,000 Trade and Other Payables $150,000 Accrued Expenses $50,000 Taxes Payable $25,000 Other Current Assets $25,000 Long-term Borrowing $350,000 Non-Current Assets $900,000 Trade Receivables $300,000 Short-term borrowing $175,000 Ben was hoping to obtain at least $50,000 after liquidation. With the information below, prepare the following: - Ben's Statement of Financial Position as at December 31. - Ben's restated Statement of Financial Position if he were to liquidate his business. Once Complete, answer the following questions: 1. What is Ben's book value? (1 mark) 2. What is Ben's liquidation value? (3 marks) 3. Will Ben have enough money to pay all his creditors? (4 marks) 4. If Ben's business cannot cover all his liabilities, what will he have to do? (2 marks)