The following balance sheet has been prepared by the accountant for Limestone Company as of June 3, 2020, the date on which the company is to file a voluntary petition of bankruptcy: LIMESTONE COMPANY Balance Sheet June 3, 2020 Assets Cash Accounts receivable (net) Inventory Land Buildings (net) Equipment (net) Total assets Liabilities and Equities Accounts payable Notes payable-current (secured by equipment) Notes payable-long term (secured by land and buildings) Common stock Retained earnings Total liabilities and equities 3,000 65,000 88,000 100,000 300,000 180,000 $ 736,000 $ 98,000 250,000 190,000 120,000 78,000 $ 736,000 Additional Information If the company is liquidated, administrative expenses are estimated at $18,000. The accounts payable figure includes $10,000 in wages earned by the company's 12 employees during May. No one earned more than $2,200. Liabilities do not include taxes of $14,000 owed to the U.S. government. Company officials estimate that 40 percent of the accounts receivable will be collected in a liquidation and that the inventory disposal will bring $80,000. The land and buildings will be sold together for approximately $310,000; the equipment should bring $130,000 at auction. Prepare a statement of financial affairs for Limestone Company as of June 3, 2020. LIMESTONE COMPANY Statement of Financial Affairs June 3, 2020 Book Values Assets Available for Unsecured Creditors Pledged with Fully Secured Creditors: Pledged with Partially Secured Creditors: Free Assets: Total amount available to pay liabilities with priority and unsecured creditors Available for unsecured creditors Estimated deficiency Book Values Liabilities and Stockholders' Equity Unsecured Nonpriority Liabilities Liabilities with Priority: Total Fully Secured Creditors: Partially Secured Creditors: Unsecured Creditors: Stockholders' equity