The following balance sheet has been prepared by the accountant for Limestone Company as of June 3, 2013, the date on which the company is to file a voluntary petition of bankruptcy: LIMESTONE COMPANY Balance Sheet 3-Jun-13 Assets Cash $3,000 Accounts Receivable (net) $65,000 Inventory $88,000 Land $100,000 Buildings (net) $300,000 Equipment (net) $180,000 Total assets $736,000 Liabilities and Equities Accounts Payable $98,000 Notes payable-current (secured by equipment) $250,000 Notes payable-long term (secured by land and buildings) $190,000 Common stock $120,000 Retained earnings $78,000 Total liabilities and equities $736,000 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.

The following balance sheet has been prepared by the accountant for Limestone Company as of June 3, 2013, the date on which the company is to file a voluntary petition of bankruptcy: LIMESTONE COMPANY Balance Sheet 3-Jun-13 Assets Cash Accounts Receivable (net) Inventory Land Buildings (net) Equipment (net) Total assets $3,000 $65,000 $88,000 $100,000 $300,000 $180,000 $736,000 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 $98,000 $250,000 $190,000 $120,000 $78,000 $736,000 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