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P15.1 Statement of Affairs The following items of information appear on the statement of affairs of Shaw Corporation 1. Estimated deficiency to unsecured creditors, $72,000.

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P15.1 Statement of Affairs The following items of information appear on the statement of affairs of Shaw Corporation 1. Estimated deficiency to unsecured creditors, $72,000. 2. Unsecured liabilities with priority, $37,000 3. Assets pledged to fully secured creditors($200,00) exceed the related liabilities by $40,000. 4. 5. 6. Liabilities to partially secured creditors, $83,000. Assets not pledged to any creditors, $185,000. Total assets, book value $523,000, estimated realizable value $435,000. Required Determine the following amounts: Assets pledged to partially secured creditors. Total unsecured liabilities (excluding those with priority). Total liabilities. Total stockholders' equity. a. b. c. d. 15.2 Calculation of Expected Distributions Gorgan Corporation is entering bankruptcy procedings. Here is its balance sheet, with estimated realizable values provided for the assets. Ctri Alt Chapter 15Bankruptcy and Reorganization Book Value Estimated Realizable Value Assets Cash. Accounts receivable. . Inventories $ 4,000 80,000 130,000 500,000 S 4,000 65,000 90,000 220,000 .. $714,000 Liabilities Wages and taxes payable 35,000 20,000 100,000 50,000 350,000 . . Accounts payable. Note payable, secured by all inventories Mortgage payable, secured by all buildings and equipment Total liabilities Equity Capital stock 555,000 10,000 149,000 .159,000 . $714,000 Retained earnings.. Total equity All priority liabilities are within the legal limits for collection. Required How much, in dollars, is expected to be available to creditors upon liquidation of the corporation? b. Calculate the expected recovery percentage for unsecured creditors. How much, in dollars, can each of the classes of creditors expect to receive? Note that the total equals your answer to a, except for possible rounding errors. Calculate the expected recovery percentage for partially secured creditors. c. d

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