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. The entire inventory can be soid for only $33,000. The following is a trial balance as of March 14, 2020, the day the company files for a Chapter 7 liquidation: Company officials believe that 60 percent of the accounts receivable can be collected if the company is liquidated. The building and land have a fair value of $75,000, and the equipment is worth $19,000. The investments represent shares of a nationally traded company that can be soid at the current time for $21,000. Administrative expenses necessary to carry out a liquidation would approximate $16,000. Prepare a statement of financial affairs for Lynch, Inc., as of March 14, 2020. 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. The entire inventory can be sold for only $33,000. The following is a trial balance as of March 14,2020 , the day the company files for a Chapter 7 liquidation: Assume that the company will be liquidated and the following transactions will occur: - Accounts receivable of $18,000 are collected with remainder written off. - All of the company's inventory is sold for $40,000. - Additional accounts payable of $10,000 incurred for various expenses, such as utilities and maintenance, are discovered. - The land and building are sold for $71,000. - The note payable due to the Colorado Savings and Loan is paid. - The equipment is sold at auction for only $11,000 with the proceeds applied to the note owed to the First National Bank. - The investments are sold for $21,000. - Administrative expenses total $20,000 as of July 23, 2020, but no payment has been made yet. a. Prepare a statement of realization and liquidation for the period from March 14, 2020, through July 23, 2020. b. How much cash would be paid to an unsecured, nonpriority creditor that Lynch, Inc., owes a total of $1,000 ? 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. The entire inventory can be soid for only $33,000. The following is a trial balance as of March 14, 2020, the day the company files for a Chapter 7 liquidation: Company officials believe that 60 percent of the accounts receivable can be collected if the company is liquidated. The building and land have a fair value of $75,000, and the equipment is worth $19,000. The investments represent shares of a nationally traded company that can be soid at the current time for $21,000. Administrative expenses necessary to carry out a liquidation would approximate $16,000. Prepare a statement of financial affairs for Lynch, Inc., as of March 14, 2020. 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. The entire inventory can be sold for only $33,000. The following is a trial balance as of March 14,2020 , the day the company files for a Chapter 7 liquidation: Assume that the company will be liquidated and the following transactions will occur: - Accounts receivable of $18,000 are collected with remainder written off. - All of the company's inventory is sold for $40,000. - Additional accounts payable of $10,000 incurred for various expenses, such as utilities and maintenance, are discovered. - The land and building are sold for $71,000. - The note payable due to the Colorado Savings and Loan is paid. - The equipment is sold at auction for only $11,000 with the proceeds applied to the note owed to the First National Bank. - The investments are sold for $21,000. - Administrative expenses total $20,000 as of July 23, 2020, but no payment has been made yet. a. Prepare a statement of realization and liquidation for the period from March 14, 2020, through July 23, 2020. b. How much cash would be paid to an unsecured, nonpriority creditor that Lynch, Inc., owes a total of $1,000