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 $ 11,000 84,000 126,000 119,000 319,000 218,000 $ 877,000 $ 136,000 288,000 209,000 139,000 105,000 $ 877,000 Additional Information If the company is liquidated, administrative expenses are estimated at $37,000. The accounts payable figure includes $29,000 in wages earned by the company's 12 employees during May. No one earned more than $4,100. Liabilities do not include taxes of $33,000 owed to the U.S. government. Company officials estimate that 36 percent of the accounts receivable will be collected in a liquidation and that the inventory disposal will bring $99,000. The land and buildings will be sold together for approximately $348,000; the equipment should bring $149,000 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 $ 0 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 Accounts receivable Inventory $ 0 Total amount available to pay liabilities with priority and unsecured creditors Less: Liabilities with priority Available for unsecured creditors Estimated deficiency $ 0 $ 0 $ 0 Book Values Liabilities and Stockholders' Equity Unsecured Nonpriority Liabilities Liabilities with Priority: Administrative expenses Salaries payable Taxes payable $ 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 Stockholders' equity $ 0 $ 0