Q/ Prepare a statement of financial affairs

The Turlock Company is facing possible liquidation. Using the following information, prepare a statement of financial affairs in good form. Here's the company's most recent balance sheet: Assets Cash Accounts Receivable Inventory Investments Equipment Land Liabilities and equities Accounts payable Notes payable Mortgage payable $170,000 90,000 80,000 $12,000 60,000 120,000 45,000 105,000 82,000 Common stock Retained earnings 75,000 9,000 Total assets $424,000 Total Liab, and Eq's $424,000 The mortgage payable is fully secured by the land. The land can be sold immediately for $104,000 The equipment partially secures the notes payable. The equipment is not in good shape and at auction will bring only $12,000 The market has declined so the investments have lost 40% of their value. It is estimated that 30% of the accounts receivable will have to be written off. The inventory is outdated and will bring only 50% of its book value at auction. Additional income taxes will be $15,000 Administrative expenses for bankruptcy are expected to total $20,000