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Lynch, Inc., is a hardware store operating in Boulder, Colorado. Management recently made some poor inventory acquisitions that have loaded the store with unsalable merchandise.

Lynch, Inc., is a hardware store operating in Boulder, Colorado. Management recently made some poor inventory acquisitions that have loaded the store with unsalable merchandise. Because of the drop in revenues, the company is now insolvent. Following is a trial balance as of March 14, 2017. Debit Credit Accounts payable $ 37,000 Accounts receivable $ 33,000 Accumulated depreciation, building 54,000 Accumulated depreciation, equipment 20,000 Additional paid-in capital 12,000 Advertising payable 8,000 Building 84,000 Cash 5,000 Common stock 62,000 Equipment 42,000 Inventory 108,000 Investments 19,000 Land 14,000 Note PayableColorado Savings and Loan (secured by lien on land and building) 74,000 Note PayableFirst National Bank (secured by equipment) 158,000 Payroll taxes payable 5,000 Retained earnings (deficit) 134,000 Salaries payable (owed equally to two employees) 9,000 Totals $ 439,000 $ 439,000

Assume that the company will be liquidated and the following transactions will occur: Accounts receivable of $22,000 are collected with remainder written off. All of the company's inventory is sold for $44,000. Additional accounts payable of $14,000 incurred for various expenses such as utilities and maintenance are discovered. The land and building are sold for $79,000. The note payable due to the Colorado Savings and Loan is paid. The equipment is sold at auction for only $15,000 with the proceeds applied to the note owed to the First National Bank. The investments are sold for $29,000. Administrative expenses total $24,000 as of July 23, 2017, but no payment has yet been made. Prepare a statement of realization and liquidation for the period from March 14, 2017, through July 23, 2017. How much cash would be paid to an unsecured, nonpriority creditor that Lynch, Inc., owes a total of $5,000?

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