P15.7 Statement of Realization and Liquidation Comfort Mattress Corporation, a retailer, decided to liquidate in the face of an extreme cash shortage. By agreement with creditors, a receiver was appointed to manage the liquidation. Upon appointment, the receiver found the company's balance sheet to be as follows: COMFORT MATTRESS CORPORATION Balance Sheet March 17, 2020 $550,000 Cash..................... ........... Accounts receivable. ... ... .. Inventory of merchandise. ... Store fixtures, net............. $ 5,000 140,000 600,000 200,000 $945,000 Accounts payable..... Loan payable (secured by inventory).. Note payable (secured by fixtures). ... Shareholders' equity .............. Total liabilities and equity........... 100,000 (5,000) $945,000 Total assets ...... From March 17 through June 30, the following occurred: 1. Collected accounts receivable of $100,000; the remaining accounts are deemed to be uncollectible and written off. Held a going out of business sale. Sold inventory costing $400,000 for $350,000. Paid expenses of conducting the sale, amounting to $80,000. Sold the remaining inventory to a liquidator for $50,000. 4. The receiver terminated the store's lease; the lease provides for a termination penalty of $35,000, which was accrued. 5. Sold the store fixtures at auction for a net of $75,000. 6. Accrued the receiver's fee of $50,000. 7. Paid the secured creditors to the extent of the realized value of their security. Required a. Prepare a statement of realization and liquidation as of June 30, 2020. b. Compute the remaining cash and determine how it is disbursed, assuming no further expenses. P15.7 Statement of Realization and Liquidation Comfort Mattress Corporation, a retailer, decided to liquidate in the face of an extreme cash shortage. By agreement with creditors, a receiver was appointed to manage the liquidation. Upon appointment, the receiver found the company's balance sheet to be as follows: COMFORT MATTRESS CORPORATION Balance Sheet March 17, 2020 $550,000 Cash..................... ........... Accounts receivable. ... ... .. Inventory of merchandise. ... Store fixtures, net............. $ 5,000 140,000 600,000 200,000 $945,000 Accounts payable..... Loan payable (secured by inventory).. Note payable (secured by fixtures). ... Shareholders' equity .............. Total liabilities and equity........... 100,000 (5,000) $945,000 Total assets ...... From March 17 through June 30, the following occurred: 1. Collected accounts receivable of $100,000; the remaining accounts are deemed to be uncollectible and written off. Held a going out of business sale. Sold inventory costing $400,000 for $350,000. Paid expenses of conducting the sale, amounting to $80,000. Sold the remaining inventory to a liquidator for $50,000. 4. The receiver terminated the store's lease; the lease provides for a termination penalty of $35,000, which was accrued. 5. Sold the store fixtures at auction for a net of $75,000. 6. Accrued the receiver's fee of $50,000. 7. Paid the secured creditors to the extent of the realized value of their security. Required a. Prepare a statement of realization and liquidation as of June 30, 2020. b. Compute the remaining cash and determine how it is disbursed, assuming no further expenses