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 $ 12,000 85, eee 128, eee 120,000 320, eee 220, eee $ 885, eee $ 138, eee 299,000 210, eee 140, see 107, eee $ 885,000 Additional Information If the company is liquidated, administrative expenses are estimated at $38,000. The accounts payable figure includes $30,000 in wages earned by the company's 12 employees during May. No one earned more than $4,200. Liabilities do not include taxes of $34,000 owed to the U.S. government. Company officials estimate that 38 percent of the accounts recelvable will be collected in a liquidation and that the inventory disposal will bring $100,000. The land and buildings will be sold together for approximately $350,000; the equipment should bring $150,000 at auction. . Prepare a statement of financial affairs for Limestone Company as of June 3, 2020. 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 $ 350.000 S 350,000 Pledged with Fully Secured Creditors: Land and buildings Less: Notes payable-long term Pledged with Partially Secured Creditors: Equipment Less: Notes payable-current Free Assets: Cash S 350.000 Inventory Accounts receivable Total amount available to pay liabilities with priority and unsecured creditors Less: Liabilities with priority Available for unsecured creditors Estimated deficiency 0 S 350,000 S s 350.000 Book Values Liabilities and Stockholders' Equity Unsecured Nonpriority Liabilities Liabilities with Priority: Administrative expenses Salaries payable Taxes payable S 0 Total Fully Secured Creditors: Notes payable-long term Less: Land and buildings Partially Secured Creditors: Notes payable current Less: Equipment Unsecured Creditors: Accounts payable $ 0 0 Stockholders' equity S 0 S