Statement of Affairs Bridges Furniture Store is finding it increasingly difficult to meet its obligations despite satisfactory sales volume and profitability. Bridges cannot meet its working capital requirement for inventory and payments on current liabilities. Finally, after pledging all of its installments receivable for an additional loan. Bridges failed to meet the bills due on October 10, 2020. Bridges management believes that if all the company could obtain and extension of time in which to pay it obligations, it would be able to make all payment in full. Creditors want to know how much they would receive if the company liquidated.

The pre-closing trail balance for the current calendar year of the company on September 30, 2020 follows:

Cash	6,360
Installment receivables, pledged	645,000
Allowance for doubtful installment receivables		40,320
Accounts receivable	62,490
Allowance for doubtful accounts		3,150
Inventories, January 1, 2020	453,450
Prepaid Insurance	4,470
Autos and trucks	67,140
Accumulated depreciation, autos and trucks		44,880
Furniture and equipment	37,500
Accumulated depreciation, furniture and equipment		6,420
Buildings	269,280
Accumulated depreciation, buildings		22,590
Land	30,720
Organization cost	2,640
Trade accounts payable		396,300
Furniture and equipment loan payable		17,400
Installment loan on auto and trucks		30,000
Bank loan, secured by installment receivables		483,750
Taxes payable (prior years)		42,660
Accrued salaries and wages		14,040
Accrued interest		32,970
Notes payable , shareholders		300,000
Mortgage payable, 6%		147,000
Capital stock		300,000
Retained earnings	195,870
Sales		2,126,700
Purchases	1,582,890
Other expenses and income, net	650,370
Total	4,008,180	4,008,180

Further investigation produced the following additional data:

1. Depreciation, allowances for doubtful accounts, prepaid and accrued items are all adjusted as of September 30, 2020

2. All installment receivables are pledged with the bank on September 30, 2020. Bridges estimates that a forced liquidation will result in a loss of $120,000 of the receivables' face amount.

3. Accounts receivable are not pledged, and Bridges estimates collectibility of $49,500 on a liquidation basis.

4. The inventory on hand will likely provide only $300,000 in a forced liquidation

5. Cancellation of the insurance will provide $2,970

6. All autos and trucks are pledged as security for an installment loan, and their total market value is $24,000

7. The store was remodeled in 2019, and the furniture and equipment are financed by a loan; the furniture and equipment is pledged as security for the loan. Because of its specialized nature, Bridges estimates that a forced sale would realize no more than $15,000

8. The land and buildings are subject to a 6 percent mortgage, on which interest on the outstanding mortgage balance has been paid to July 30, 2020. It is estimated the property could be sold for $225,000

9. The accrued salaries and wages do not exceed statutory limits

10. The notes payable to shareholders are unsecured and not subordinated to general creditors. The notes carry a 6 percent rate of interest, but no interest has been paid since December 31, 2018 (21 months)

11. Bridges estimates the cost of liquidation proceedings to be $15,000

Required:

A. Prepare a statement of affairs for Bridges Furniture Store as of September 30, 2020

B. Compute the percentages of recovery for each class of creditors if Bridges Furniture Store is forced into bankruptcy