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 $ 7,000 Accounts receivable (net) 69,000 Inventory 96,000 Land 104,000 Buildings (net) 304,000 Equipment (net) 188,000 Total assets $768,000 Liabilities and Equities Accounts payable $ 106,000 Notes payable-current secured by equipment) 258,000 Notes payable-long-term (secured by land and buildings) 194,000 Connon stock 124,000 Retained earnings 86,080 Total liabilities and equities $ 768,000 Additional Information If the company is liquidated, administrative expenses are estimated at $22.000 The accounts payable figure includes $14.000 in wages earned by the company's 12 employees during May. No one earned more than $2,600 Liabilities do not include taxes of $18,000 owed to the US government. Company officials estimate that 42 percent of the accounts receivable will be collected in a liquidation and that the inventory disposal will bring $84,000. The land and buildings will be sold together for approximately $318,000, the equipment should bring $134,000 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 Book Values Liabilities and Stockholders' Equity Unsecured Nonpriority Liabilities Liabilities with Priority: Total Fully Secured Creditors: Partially Secured Creditors: Unsecured Creditors: Stockholders' equity